Lopez-Mateo, Celina and Ruiz-Porras, Antonio (2010): Market concentration measures and investment decisions in Mexican manufacturing firms. Forthcoming in: Accounting and Taxation
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We study how alternative measures of market concentration may explain investment decisions of Mexican manufacturing firms. The measures include the Herfindahl-Hirschman Index and the Dominance one. The first one is the traditional measure of market structure concentration. The Dominance Index is a competition measure used by Mexican regulators. The econometric assessments suggest that investment decisions of Mexican firms can be better explained by the Dominance Index measure than by the Herfindahl-Hirschman one. Thus our results suggest that the Mexican Dominance Index might be useful as a measure of market structure and competition. Such conclusion is based on several econometric assessments. In all cases we use certain characteristics of the firms (size, cash flows, investment opportunities and capital intensity) as control variables.
|Item Type:||MPRA Paper|
|Original Title:||Market concentration measures and investment decisions in Mexican manufacturing firms.|
|Keywords:||Investment; Dominance Index; Herfindahl-Hirschman Index; Manufacturing; Mexico|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure
L - Industrial Organization > L4 - Antitrust Issues and Policies > L40 - General
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
|Depositing User:||Antonio Ruiz-Porras|
|Date Deposited:||14. Jun 2010 10:09|
|Last Modified:||16. Feb 2013 22:37|
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