{"title":"Bank Competition and its Determinants: Evidence from Indian Banking","authors":"Bijoy Rakshit, Samaresh Bardhan","doi":"10.1080/13571516.2019.1592995","DOIUrl":"https://doi.org/10.1080/13571516.2019.1592995","url":null,"abstract":"Abstract This paper measures the degree of bank competition in India using a sample of 70 commercial banks over the period 1996–2016. To assess the degree of competition, we estimate the market power of each bank in our sample employing three nonstructural measures: the Lerner index, the adjusted Lerner index, and the Boone indicator. Bank-wise and year-wise estimates of the marginal cost required in all these measures are obtained using the semi-parametric method. The paper further attempts to undertake a comprehensive assessment of competition in Indian banking and identifies various bank-specific, macroeconomic, structural, and contestability indicators, which are supposed to explain level and variation of the degree of competition over time. Empirical findings reveal that public-sector banks in India exercise a relatively higher degree of bank competition compared to private and foreign-sector banks. However, aggregate results support that the Indian banking system is competitive in general. Unlike the structure-conduct-performance paradigm, which advocates that a concentrated banking system impairs competitiveness, our findings reveal that concentration measures hardly exert any effect on bank competition. Rather, contestability measures play a significant role in the determination of bank competition.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"102 1","pages":"283 - 313"},"PeriodicalIF":1.2,"publicationDate":"2019-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90908797","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Persistence of Price–Cost Margin and Technical Efficiency in the Indonesian Food and Beverage Industry","authors":"Maman Setiawan","doi":"10.1080/13571516.2019.1592996","DOIUrl":"https://doi.org/10.1080/13571516.2019.1592996","url":null,"abstract":"Abstract This research investigates the persistence of price–cost margin (PCM) and technical efficiency (TE) of firms and the relation between these two factors in 44 subsectors of the Indonesian food and beverage industry in the period 1980–2014. Data envelopment analysis with a bootstrapping approach is applied to estimate TE. An autoregressive model, accounting for endogeneity, is applied to estimate the persistence coefficients of PCM and TE. A cross-sectional regression model is also applied to estimate the relation between the persistence of the PCM and the persistence of TE. The results show that for these food and beverage firms, high PCM and low TE persist. Furthermore, the persistence of PCM negatively affects the persistence of TE in the industry.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"44 1","pages":"315 - 326"},"PeriodicalIF":1.2,"publicationDate":"2019-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89159044","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jarle Møen, Dirk Schindler, Guttorm Schjelderup, Julia Tropina Bakke
{"title":"International Debt Shifting: The Value-Maximizing Mix of Internal and External Debt","authors":"Jarle Møen, Dirk Schindler, Guttorm Schjelderup, Julia Tropina Bakke","doi":"10.1080/13571516.2019.1599189","DOIUrl":"https://doi.org/10.1080/13571516.2019.1599189","url":null,"abstract":"Abstract We study the capital structure of multinationals and expand previous theory by incorporating international debt tax shield effects from both internal and external capital markets. We show that: (i) multinationals’ firm value is maximized if both internal and external debt are used to save tax; (ii) the use of internal and external debt is independent of each other; and (iii) multinationals have a tax advantage over domestic firms, which cannot shift debt across international borders. We test our model using a large panel of German multinationals and find that internal and external debt shifting are of about equal importance.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"183 1","pages":"431 - 465"},"PeriodicalIF":1.2,"publicationDate":"2019-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85647301","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Market Definition and the Measurement of Multimarket Contact","authors":"Robert M. Feinberg","doi":"10.1080/13571516.2019.1570748","DOIUrl":"https://doi.org/10.1080/13571516.2019.1570748","url":null,"abstract":"Abstract The focus of this note is the appropriate definition of markets in which two (or more) firms compete for the purpose of measuring multimarket contact (MMC). Through several examples, it is shown that one cannot assume a particular trade-off with MMC as a broader or narrower approach to market definition is taken, suggesting that research using MMC measures seek robustness with alternative market definitions.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"15 1","pages":"277 - 281"},"PeriodicalIF":1.2,"publicationDate":"2019-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79577512","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Long- and Short-run Relationship Between Firm Creation and the Ease and Cost of Doing Business","authors":"Tristan Canare, J. P. Francisco, J. F. Morales","doi":"10.1080/13571516.2018.1558636","DOIUrl":"https://doi.org/10.1080/13571516.2018.1558636","url":null,"abstract":"Abstract To promote private-sector growth, many countries have implemented reforms aimed at making it easier and less costly to do business. Using data from Philippine cities and municipalities from 2011 to 2015, this paper tested for the relationship between business creation and the ease and cost of doing business. The results provide evidence that the overall ease and cost of doing business is indeed associated with business creation, but the relationship becomes more apparent with disaggregation. In particular, lower cost of doing business is found to be a much stronger predictor of business creation than ease of doing business. The specific indicators that drive this relationship are minimum wage, price of electricity, price of water, and price of land from the “cost” dimension, and number of days to process a new business permit from the “ease” dimension. These relationships have implications on policy making, especially in designing programs that target firm creation.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"31 1","pages":"249 - 275"},"PeriodicalIF":1.2,"publicationDate":"2019-02-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89603721","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Coopetition with a Risk-Pooling Arrangement in the Railroad Industry","authors":"Mahito Okura","doi":"10.1080/13571516.2018.1524702","DOIUrl":"https://doi.org/10.1080/13571516.2018.1524702","url":null,"abstract":"Abstract The main purpose of this study was to investigate coopetition with a risk-pooling arrangement in the railroad industry. The study discusses whether railroad companies voluntarily sign free alternative transportation contracts, which are contracts where non-suspended lines provide railroad services to affected passengers when some lines are suspended. The main results of this study can be summarized as follows. First, railroad companies do voluntarily wish to sign free alternative transportation contracts. In other words, coopetition with a risk-pooling arrangement is always realized. Second, in the case of a monopolistic line, when the probability of an accident occurring is relatively high, it is desirable for policy makers to provide a new line and achieve a risk-pooling arrangement.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"42 1","pages":"233 - 248"},"PeriodicalIF":1.2,"publicationDate":"2019-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90975230","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"I Want You Back: The Interplay Between Legal Availability and Movie Piracy","authors":"Michael D. Smith, Rahul Telang, Yi Zhang","doi":"10.1080/13571516.2019.1553293","DOIUrl":"https://doi.org/10.1080/13571516.2019.1553293","url":null,"abstract":"Abstract Although it is well known in the academic literature that anti-piracy measures can reduce the demand for pirated content, there are relatively few papers analyzing how legal availability impacts piracy. In this study, we answer two relevant research questions: (1) Does the availability of movies in legal digital channels reduce the demand for digital piracy? (2) Is the level of piracy prior to a movie’s release in a legal digital channel a reliable signal of legal demand after release? We answer these questions using a unique data set provided by a major motion picture studio. Our data contain 1520 catalog movies introduced to iTunes between April 2011 and April 2012. We find that iTunes availability leads to an 11.8% decrease in monthly piracy. We also find that pre-release piracy positively correlates with post-release electronic sell-through sales but not with video-on-demand sales.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"50 1","pages":"199 - 216"},"PeriodicalIF":1.2,"publicationDate":"2019-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77679979","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"New Evidence on Determinants of Intellectual Property Litigation: A Market-Based Approach","authors":"D. Czarnitzki, Kristof Van Criekingen","doi":"10.1080/13571516.2019.1553289","DOIUrl":"https://doi.org/10.1080/13571516.2019.1553289","url":null,"abstract":"Abstract We contribute to the economic literature on patent litigation by taking a new perspective. In the past, scholars mostly focused on specific litigation cases at the patent level and related technological characteristics to the event of litigation. However, observing intellectual property (IP) disputes suggests that not only technological characteristics may trigger litigation suits, but also the market positions of firms, and that firms dispute not only over single patents but often over portfolios. This paper examines the occurrence of IP litigation cases in Belgian firms using the 2013 Community Innovation Survey with supplemental information on IP litigation and patent portfolios. The rich survey information regarding firms’ general innovation strategies enables us to introduce market-related variables such as sales with new products, as well as sales based mainly on imitation and incremental innovation. Our results indicate that when controlling for firms’ IP portfolios, the composition of sales in terms of innovation and imitation has additional explanatory power regarding litigation propensities. Firms with high sales from innovations are more likely to become plaintiffs in court. Contrastingly, firms with high sales from incremental innovation and imitation are more likely to become defendants in court and, moreover, are more likely to negotiate settlements outside of court.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"1 1","pages":"115 - 93"},"PeriodicalIF":1.2,"publicationDate":"2019-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90525486","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Patent Protection, Startup Takeovers, and Open Innovation","authors":"In-Uck Park, A. Panagopoulos","doi":"10.1080/13571516.2018.1553285","DOIUrl":"https://doi.org/10.1080/13571516.2018.1553285","url":null,"abstract":"Abstract Open innovation largely relies on startup innovators transferring their R&D to incumbent firms. Yet, such innovators are at a disadvantage when faced with incumbents holding patent portfolios, raising the question why do such Lilliputian firms choose to innovate? In view of this, we study the impact of patent protection on the innovation incentives of startup firms in a dynamic model where an incumbent faces a sequence of potential startups and the incumbent’s chance of winning an infringement lawsuit increases with the size of its patent portfolio. It is shown that open innovation–style takeover deals generate extra benefits for the incumbent via its enhanced future bargaining positions, a part of which accrues to the current startup as an increased bargaining share, justifying R&D activity that would not have taken place otherwise.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"50 1","pages":"39 - 64"},"PeriodicalIF":1.2,"publicationDate":"2019-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74252144","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Can Intellectual Property Rights Affect Multinational Enterprises’ Entry Modes? The Chilean Case","authors":"Luis Castro Peñarrieta, G. Canavire-Bacarreza","doi":"10.1080/13571516.2019.1553656","DOIUrl":"https://doi.org/10.1080/13571516.2019.1553656","url":null,"abstract":"Abstract Multinational Enterprises (MNEs) can choose between exporting, introducing foreign direct investment (FDI), and licensing to a domestic firm among other modes of entry to a new market. Yet, this decision may be affected by the strength of intellectual property rights (IPR). Thus, this paper analyzes the effect of stronger IPR on the entry modes chosen by MNEs. We propose a theoretical model that predicts that in the presence of stronger IPR, MNEs would choose licensing instead of FDI as an entry mode. We test the predictions of the model using plant-level data for Chile for the period 2001–2007. We exploit the exogenous reform of IPR in 2005, controlling for the activities of industries where high levels of technology transfer and imitation are important factors. The main results show that stronger IPR change the mode of entry chosen by MNEs. In this case, FDI is replaced by licensing. This is explained by Chile’s high absorptive capacity during this period. We test whether this effect differs across high- and low-tech industries and conclude that the displacement of FDI is less severe in high-tech industries.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"6 1","pages":"177 - 198"},"PeriodicalIF":1.2,"publicationDate":"2019-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84774472","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}