Banking Market Competition and Corporate Innovation

2015 ◽  
Author(s):  
Lin Tian ◽  
Liang Han ◽  
Shengnian Wang
Keyword(s):  
Market Competition ◽  
Corporate Innovation ◽  
Banking Market

Banking Market Competition, Firm Dynamics, and Aggregate Growth

2011 ◽  
Author(s):  
Felix Noth ◽  
Michael Koetter ◽  
Robert Inklaar
Keyword(s):  
Market Competition ◽  
Firm Dynamics ◽  
Banking Market ◽  
Aggregate Growth

Local Spillovers of Corporate Bond Default and Corporate Innovation: The Role of Market Competition

2021 ◽  
Author(s):  
Haifang Xiong ◽  
Tianming Liu ◽  
Zhiqiang Wang
Keyword(s):  
Market Competition ◽  
Corporate Bond ◽  
Corporate Innovation

The relationship between banking market competition and risk-taking: Do size and capitalization matter?

2012 ◽  
Vol 36 (12) ◽  
pp. 3366-3381 ◽  
Author(s):  
Benjamin M. Tabak ◽  
Dimas M. Fazio ◽  
Daniel O. Cajueiro
Keyword(s):  
Risk Taking ◽  
Market Competition ◽  
Banking Market ◽  
The Relationship

Monopoly and corporate innovation: evidence from antitrust law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minggui Yu ◽  
Yujing Huang ◽  
Huijie Zhong ◽  
Qing Zhang
Keyword(s):  
Economic Growth ◽  
Law Enforcement ◽  
Market Competition ◽  
Private Enterprises ◽  
Chinese Government ◽  
Antitrust Law ◽  
Content Type ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
The Impact

Purpose There are two opposite views about whether the Antitrust Law is conducive to the development of the economy. One view is that the Antitrust Law can restrain monopoly, maintain market competition and benefit economic growth. The other view is that the Antitrust Law inhibits innovation by monopolistic firms and fosters rent-seeking, which is bad for economic growth. To provide a possible perspective for clarifying the controversy, this paper aims to answer the following two questions: first, will the Antitrust Law inhibit corporate innovation? Second, does the antitrust enforcement agency discriminate against private enterprises? Design/methodology/approach Based on the samples of A-share listed companies from 2003 to 2013, the authors use the implementation of China’s Antitrust Law in 2008 as a policy shock, take the monopoly enterprises in each industry as the treatment group and competitive enterprises as the control group, using the difference-in-differences method to test the impact of the implementation of the Antitrust Law on corporate innovation activities. Findings The results show that compared with competitive enterprises, the patent output of monopolistic enterprises was significantly reduced after the implementation of the Antitrust Law, which indicates that the Antitrust Law does inhibit the innovation activities of monopolistic enterprises. Further research finds that the innovation suppression effect of the Antitrust Law is more prominent in state-owned enterprises, which means that the government does not have “selective law enforcement” against private enterprises in the process of law enforcement. Therefore, the results provide evidence for the idea that government intervention is neutral. Originality/value First, the paper enriches and expands the research on the factors affecting corporate innovation from the perspective of market structure. Second, it enriches and expands relevant research on the consequences of implementing the Antitrust Law from the perspective of corporate innovation. Third, it not only provides the relevant empirical evidence for clarifying the dispute about the Antitrust Law but also is helpful to clarify whether the Chinese Government has “selective law enforcement” against private enterprises.

scholarly journals Concentration and Competition in the Albanian Banking Sector

2015 ◽  
Vol 2 (1) ◽  
pp. 168 ◽  
Author(s):  
Eleana Lici ◽  
Irena Boboli
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Market Competition ◽  
Banking System ◽  
External Financing ◽  
Low Level ◽  
Banking Market ◽  
The Government ◽  
High Level

Albania has a relatively new financial system, where banking system is the most developed financial service in our country, with a share of 94, 4% of the total financial services. This is a phenomenon of countries with emerging economies, which proves that there is greater reliance on the state economic development of the banking sector, by effecting from the households to the biggest investors and the government. As in any market, competition is important for the banking sector because, it affects the efficiency and the quality of services offered. Furthermore, competition in banking has also implications for other sectors of the economy. So, higher competition in the banking sector is found to be associated with a faster growth of other sectors of the economy that rely on external financing. The main goal of this paper is to understand the characteristics of competition in our banking system and study the relationship between the level of concentration and competition. We are going to measure the concentration by the “H” indices. The “H” (Herfindaflit) indices is a measure of the level of the concentration of the banking system of a country. A high level of the indices shows a high level of concentration and as a consequence a low level of competition. A low level of the indices shows a low level of concentration which is sign of a banking market with a high competition.

scholarly journals Consolidation of the Banking Sector: Determinants and Consequences

2021 ◽  
Vol 1 (47) ◽  
pp. 98-106
Author(s):  
I. V. Krasnova ◽  
◽  
A. V. Nikitin ◽  
V. H. Shevaldina ◽  
◽  
...  
Keyword(s):  
Banking Sector ◽  
Financial Integration ◽  
Market Competition ◽  
Banking Services ◽  
Competitive Intensity ◽  
Functional Strategy ◽  
Banking Market ◽  
Banking Concentration ◽  
Market Consolidation ◽  
The Relationship

The article aims at substantiating the theoretical and methodological foundations of research in bank consolidation and assessing its consequences in order to identify the relationship between consolidation and the banking market structure. The main preconditions and priorities of consolidation are systematized and generalized, taking into account the theory of financial integration and synergetic interaction. This approach will contribute to deeper understanding of the motives and trends of consolidation in modern conditions. It is noted that the transnationalization and concentration of capital form the basis for market consolidation, which goes through a certain life cycle, the latter being specified by the authors. It is concluded that the universal, integrated nature of financial business and the formation of financial business ecosystems is becoming more widespread. The main changes in financial mediation are identified. Statistics of banking concentration in Ukraine is given. The dynamics of concentration ratio for the period from January 1, 2000 to August 1, 2020 was analyzed, revealing that the market is moderately concentrated. It is stipulated that the higher the combined share of the five major banks in the banking sector, the less likely a domestic merger and acquisition is. Accordingly, the domestic banking market, compared to European ones, has significant potential. It is concluded that the high values of profitability indicators speak of excess demand over supply in the banking market; thus, competitive intensity under such conditions is minimal, even with the withdrawal of most banks from the market. Thus, competition is only declared. In the future, we should expect increased non-interest rate competition. It is noted that competitive intensity depends on the concentration, dynamics and profitability of the banking market. Competition assessment, carried out using non-structural measures, H-statistics, Boone indicators and Lerner index, showed that, since the an individual bank does not build up its range of activity through consolidation, or by redistributing its market share among participants, but due to the growing demand for banking services, and remote services in particular, competition is actually reduced. The research confirmed that the processes of concentration, consolidation and competition are interconnected, and this connection should be identified to better understand the formation of the banks’ functional strategy and their choice of the business model.

scholarly journals Can strategic corporate social responsibility drive corporate innovation?

2021 ◽  
Vol 52 (1) ◽  
Author(s):  
Zhenzhen Yang ◽  
Hanning Su ◽  
Wenzhang Sun
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Market Competition ◽  
Economic Consequences ◽  
Business And Society ◽  
Corporate Innovation ◽  
Strategic Csr ◽  
Corporate Social

Purpose: In practice, an increasing number of economic entities have begun to consider strategic corporate social responsibility (CSR) as an opportunity to create a win-win situation for the organisation and the society. The existing literature has yet to soundly corroborate the role of strategic CSR in corporate innovation. This study examines the relationship between strategic CSR and innovation.Design/methodology/approach: The empirical regression models are estimated to analyse the data collected from 2817 firms yielding 18 845 firm–year observations from 2001 to 2014 in the United States.Findings/results: The findings indicate that firms with strategic CSR generate more and better innovation outputs. The positive effect is more pronounced when institutional ownership is lower, when firm size is larger, and when product market competition is more intense. In terms of economic consequences, firms with strategic CSR actually have higher commercial value and are less likely to suffer loss from failed innovation.Practical implications: To establish a sustainable relationship with stakeholders and realise the long-term development of business and society, enterprises should engage in strategic CSR in a planned manner based on their own resources and professional expertise.Originality/value: The study sheds light on a growing body of literature that investigates the real consequences of firms’ strategic CSR, and explains the growing recognition of the importance of strategic CSR.

scholarly journals Banking market competition in Europe—financial stability or fragility enhancing?

2019 ◽  
Vol 3 (2) ◽  
pp. 257-285 ◽  
Author(s):  
Kalle Ahi ◽  
◽  
Laivi Laidroo
Keyword(s):  
Financial Stability ◽  
Market Competition ◽  
Banking Market

scholarly journals Crowding in or crowding out? How local government debt influences corporate innovation for China

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259452
Author(s):  
Junbing Xu ◽  
Yuanyuan Li ◽  
Dawei Feng ◽  
Zhouyi Wu ◽  
Yang He
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Market Competition ◽  
Government Debt ◽  
Crowding Out ◽  
Fiscal Policies ◽  
Corporate Innovation ◽  
Government Financing ◽  
Investment In China ◽  
D Investment

The pressure upon local governments to redeem their debt could affect government fiscal ability. It could consequently affect their fiscal policies on corporations, which might distort corporate innovation. Based on the data of Chinese Shanghai and Shenzhen A-share listed companies and the local government implicit short-term debt financed by local government financing vehicles (LGFVs) in 31 provinces, this paper shows that local government debt (LGD) negatively affects corporate R&D investment in China, thereby suggesting a strong crowding-out effect. The crowding-out effect is more pronounced when the firm is a non-state-owned enterprise (NSOE), the firm’s size is small, the firm’s age is young, or the firm is in the lower market competition. This paper provide evidence by interacting the terms that local government actions, such as consumption of fiscal resources, strengthening tax collection efforts, or consumption of credit resources, might partially account for the crowding-out effect. This study illustrates the innovation costs of local government debt.

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