재무연구 제 권 호 (2011년 5월)
Asian Review of Financial Research, Vol., No..
pp.1776~1822
pp.1776~1822
Capital Allocation and Product Market Competition during a Financial Crisis
Soku Byoun Hankamer School of Business, Baylor University, One Bear Place, #98004, Waco, TX 76798-8004
Zhaoxia Xu Department of Finance and Risk Engineering, Polytechnic Institute of New York University, 6 Metro Tech Center, New York, USA, 11201.
We nd evidence of capital reallocation across rms during the 2007-2008 nancial crisis: rms having relied on internal funds prior to the crisis increase external capital and in- vestments during the crisis, whereas rms having depended on external nance signicantly contract their external capital and investments during the crisis. We further show that inter- nal nance rms have higher market share growth during the crisis relative to their external nance dependent competitors. Our ndings suggest that the capital supply shock created by the crisis provides unequal opportunities for rms and that nancially strong rms have a competitive advantage over their weakened competitors.
Soku Byoun
Zhaoxia Xu
We nd evidence of capital reallocation across rms during the 2007-2008 nancial crisis: rms having relied on internal funds prior to the crisis increase external capital and in- vestments during the crisis, whereas rms having depended on external nance signicantly contract their external capital and investments during the crisis. We further show that inter- nal nance rms have higher market share growth during the crisis relative to their external nance dependent competitors. Our ndings suggest that the capital supply shock created by the crisis provides unequal opportunities for rms and that nancially strong rms have a competitive advantage over their weakened competitors.
Capital allocation,Internal nance,Financial crisis,Market share.
