Chakraborty, Debojyoti and Bhattacharya, Kaushik (2009): Creative Destruction and Cycles in the US Capital Market: Evidence from Fortune 500 Firms. Forthcoming in: Empirical Economics Letters , Vol. 9, No. 7 (July 2010): pp. 691-695.
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The paper analyzes the relationship between creative destruction and cycles in the US capital market. Creative destruction in a year is measured by the number of new firms in the Fortune 500 list. Creative destruction is found to be positively associated with smoothed annual returns based on the Dow Jones Index (DJI), signifying that new entries in Fortune 500 tend to be more during boom than during recession years. Easier financing of innovative ideas during boom is hypothesized as a reason behind such positive association.
|Item Type:||MPRA Paper|
|Original Title:||Creative Destruction and Cycles in the US Capital Market: Evidence from Fortune 500 Firms|
|English Title:||Creative Destruction and Cycles in the US Capital Market: Evidence from Fortune 500 Firms|
|Keywords:||Creative Destruction, Business Cycle.|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles|
|Depositing User:||Kaushik Bhattacharya|
|Date Deposited:||13. Dec 2010 20:49|
|Last Modified:||18. Feb 2013 12:19|
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