Market Power, Industrial Concentrations, and Market Performance
| Autor: | Chien-Chung Cheng, 鄭建忠 |
|---|---|
| Rok vydání: | 2014 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 102 This study aims to emphasis on the role of product market power and industrial concentration of high-tech companies in stock market performance. Peress (Journal of Finance, 2010) initially establishes a theory and suggests that firms with more market power have less volatile and lower returns. Kale and Loon (Journal of Financial Markets, 2011) following their theory and empirically find that firms with more market power have greater stock liquidity. In contract, this thesis examines high-tech firms in the Taiwanese markets to test how market power and industrial concentration as well may affect stock returns and return volatility. Several preliminary results are observed as follows. Controlling firm sizes, financial leverage, market-to-book ratio and beta, the variable of market power measured by the Lerner index is negatively associated with abnormal returns. However, market concentrations are not related to abnormal returns. Additionally, this study finds that both market power and market concentration are negatively associated with return volatility. Our results suggest that market power and industrial concentration may have different impacts on stock market performance. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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