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Author
Senarathne Chamil W. (School of Economics, Wuhan University of Technology, China), Long Wei (School of Economics, Wuhan University of Technology, Wuhan, China)
Title
Industry Competition and Common Stock Returns
Konkurencyjność branży a zwrot z inwestycji w akcje
Source
Nauki o Zarządzaniu / Uniwersytet Ekonomiczny we Wrocławiu, 2019, vol. 24, nr 3, s. 24-35, tab., bibliogr. 55 poz.
Management Sciences / Uniwersytet Ekonomiczny we Wrocławiu
Keyword
Konkurencyjność, Akcje, Innowacje, Stopa zwrotu
Competitiveness, Shares, Innovations, Rate of return
Note
JEL Classification: G17, D41, L22, G12
streszcz., summ.
Abstract
Niniejszy artykuł analizuje związek między konkurencyjnością branży a zwrotem z inwestycji w akcje zwykłe dwudziestu spółek notowanych na giełdzie w Kolombo. Indeks Herfindahla (1950) H został rozszerzony, aby uwzględnić wariancję przekrojowego rozproszenia zysków, która odpowiada względnej konkurencji branży. Wyniki regresji pokazują, że konkurencyjność branży nie jest związana ze zwrotami z inwestycji w akcje zwykłe z uwzględnieniem rozszerzonego indeksu H w regresji jako zmiennej w powiązaniu przyczynowym. Przy uwzględnieniu zwrotu z inwestycji rynkowych współczynniki rozszerzonego indeksu H wraz z dwoma innymi badanymi zmiennymi stają się statystycznie nieistotne w regresji. Ustalenia te sugerują, że ryzyko związane z konkurencją branżową nie jest wyceniane, ponieważ może być zdywersyfikowane przez odpowiednio zarządzany łańcuch wartości poszczególnych firm, co powoduje, iż nie jest wymagana rekompensata za ryzyko konkurencji branżowej.(abstrakt oryginalny)

This paper examines the relationship between industry competitiveness and common stock returns of twenty listed firms of the Colombo Stock Exchange. The Herfindahl (1950) H index is extended to include the variance of cross sectional earnings dispersion that accounts for the relative competition of an industry. The regression results show that the industry competitiveness is unrelated to common stock returns when the extended H index is included in the regression specification as a common factor. Although the overall market factor (i.e. market return) remains statistically significant, coefficients of extended H index together with two other controlled factors become statistically insignificant in the regression. These findings suggest that the risk pertaining to industry competition is not priced as it could be diversified away by the appropriately managed value chain of the individual firms and, as such, no compensation for the risk of industry competition is demanded.(original abstract)
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ISSN
2080-6000
Language
eng
URI / DOI
http://dx.doi.org/10.15611/ms.2019.3.04
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