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    Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in British Journal for the Philosophy of Science following peer review. The definitive publisher-authenticated version Sudipto Dasgupta, Alminas Žaldokas, Anticollusion Enforcement: Justice for Consumers and Equity for Firms, The Review of Financial Studies, Volume 32, Issue 7, July 2019 is available online at: https://academic.oup.com/rfs/article/32/7/2587/5079300

    Accepted author manuscript, 587 KB, PDF document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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Anti-Collusion Enforcements: Justice for Consumers and Equity for Firms

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published
<mark>Journal publication date</mark>1/07/2019
<mark>Journal</mark>Review of Financial Studies
Issue number7
Volume32
Number of pages38
Pages (from-to)2587–2624
Publication StatusPublished
Early online date25/08/18
<mark>Original language</mark>English

Abstract

We consider the case of changing competition that comes from stronger antitrust enforcement around the world to show that, as the equilibrium switches from collusion to oligopolistic competition, firms step up investment and increase equity issuance. As a result, debt ratios fall. These results imply the importance of financial flexibility in surviving competitive threats. Our identification relies on a difference-in-differences estimation based on the staggered passage of leniency programs in 63 countries around the world from 1990 to 2012.

Bibliographic note

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in British Journal for the Philosophy of Science following peer review. The definitive publisher-authenticated version Sudipto Dasgupta, Alminas Žaldokas, Anticollusion Enforcement: Justice for Consumers and Equity for Firms, The Review of Financial Studies, Volume 32, Issue 7, July 2019 is available online at: https://academic.oup.com/rfs/article/32/7/2587/5079300