International College of Economics and Finance

ICEF/LFE Research Seminar by Roni Michaely (Cornell University)

On Thursday, September 15 at 4.40 pm, room 3211 (Shabolovka str. 26) ICEF and LFE held the Research Seminar in Finance.
Speaker: Roni Michaely (Cornell University)
Theme: "Are US Industries Becoming Less Competitive?"

Abstract: More than 90% of US industries have experienced an increase in concentration levels over the last two decades.   Firms in industries with the largest increases in product market concentration have enjoyed higher profit margins, positive abnormal stock returns, and more profitable M&A deals, suggesting that market power is becoming an important source of value. This phenomenon has been mainly driven by the consolidation of publicly-traded firms into larger entities.  The increased level of concentration due to public firms' consolidation has not been offset by a larger presence of private or foreign firms.  Overall, our findings suggest that the nature of US product markets has undergone a structural shift that has weakened competition.

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