We find evidence of capital reallocation across firms during the 2007-2008 financial crisis:
firms having relied on internal funds prior to the crisis increase external capital and in-
vestments during the crisis, whereas firms having depended on external finance significantly
contract their external capital and investments during the crisis. We further show that inter-
nal finance firms have higher market share growth during the crisis relative to their external
finance dependent competitors. Our findings suggest that the capital supply shock created
by the crisis provides unequal opportunities for firms and that financially strong firms have
a competitive advantage over their weakened competitors.
Keywords: Capital allocation, Internal finance, Financial crisis, Market share.
학회소식
[2011년 제 2차] Capital Allocation and Product Market Competition d
작성자 : 관리자
조회수 : 1068
게시일 :
2011-06-03
