Impact Of Competition Research Articles

Impact of competition on reimbursement decisions for cancer drugs in China: an observational study

Annual Chinese National negotiations for including innovative drugs in the National Reimbursement Drug List (NRDL) reveal an increasing number of new drugs with overlapping action mechanisms of action and similar indications. Yet, it is unclear if competition affects reimbursement decisions. Thus, we explored the impact of competition on reimbursement decisions for cancer drugs in China. We identified the cancer drugs involved in NRDL negotiations from 2017 to 2022 and focused on the initial reimbursement decision for eligible newly negotiated drugs. Drugs were classified as within-class competitors based on their equivalent biological mechanisms of action and approved indications, including identified and potential competitors. Other variables included drug type, clinical benefit and safety, monthly drug cost, and disease incidence rate. We employed traditional univariate and multivariate Firth's penalized logistic regression to assess the association between reimbursement decisions and variables at the indication and drug levels. Between 2017 and 2022, 102 cancer drugs corresponding to 141 indications were studied, and 66 drugs (64.7%) covering 95 indications (67.4%) were added to the NRDL. The proportion of reimbursements for indications with identified competition was significantly higher than that for indications without identified competition (84.6% vs 52.6%, p<0.0001). However, the difference in reimbursement proportions between groups with and without potential competition was not statistically significant (66.7% vs 68.3%, p=0.84). Firth's penalized logistic regression showed that identified competition was positively correlated with successful NRDL inclusion, whereas potential competition had no significant effect on negotiation outcomes. Improved overall survival or progression-free survival were positively associated with NRDL inclusion, whereas disease incidence negatively impacted reimbursement decisions. Improved clinical benefit and identified competition were positively correlated with NRDL inclusion. In China's value-based negotiation model, clinical benefits served as a crucial foundation of price negotiation for cancer drugs, and market competition helped these drugs enter the NRDL at more reasonable prices. This has important implications for reimbursement decisions and accessibility and affordability improvement for innovative drugs worldwide. National Natural Science Foundation of China (No. 72104151).

The role of product market competition and analyst attention in modulating the link between equity pledges and classification shifting

This study investigates the association between equity pledges and classification shifting earnings management in Chinese listed firms, spanning the period from 2016 to 2022. Additionally, it explores the moderating influence of product market competition (PMC) and analyst attention on this relationship. By analyzing a sample comprising 12,583 firm-year observations, several notable findings are observed. The regression results reveal a positive and statistically significant relationship between equity pledges and classification shifting earnings management (coefficient = 0.00234, p &amp;lt; 0.01). Moreover, this positive impact is further magnified when specifically considering downward classification shifting (coefficient = 0.00368, p &amp;lt; 0.01). Regarding the moderating factors, the results demonstrate a positive moderating effect of PMC on the relationship between equity pledges and classification shifting, with an interaction coefficient of 0.0165 (p &amp;lt; 0.01). This moderating effect is particularly pronounced in the context of downward classification shifting, with an interaction coefficient of 0.0142 (p &amp;lt; 0.01). Similarly, analyst attention also positively moderates the relationship, as indicated by an interaction coefficient of 0.00144 (p &amp;lt; 0.05), with a stronger effect observed in the case of downward classification shifting, with an interaction coefficient of 0.00329 (p &amp;lt; 0.01). Furthermore, additional tests reveal that leverage strengthens the aforementioned moderating effects. The three-way interaction involving debt, PMC, and equity pledges significantly influences classification shifting, with a coefficient of 0.0415 (p &amp;lt; 0.05). Specifically, debt exacerbates the moderating impact of competition on highly leveraged firms that engage in downward classification shifting, as evidenced by a coefficient of 0.0599 (p &amp;lt; 0.05). Similarly, debt reinforces the moderating role of analyst attention (coefficient = 0.00820, p &amp;lt; 0.05), especially for downward classification shifting (coefficient = 0.00902, p &amp;lt; 0.1). Propensity score matching and robustness tests validate the findings. Therefore, this research contributes to the understanding of the economic implications of equity pledge by focusing on earnings manipulation through classification shifting. It also examines this relationship within different competitive environments and external regulatory frameworks, aiming to promote the long-term viability of companies.

Digital Competitiveness and Economic Resilience

In the era of rapid digital transformation, understanding digital competitiveness becomes crucial for assessing a country's economic resilience. This study contributes to existing literature by systematically reviewing the impact of digital competitiveness on economic resilience, emphasizing dimensions such as knowledge, technology, and future readiness. By analyzing 58 selected articles from leading academic databases like Google Scholar, Scopus, and Web of Science published between 2019 and 2024, this research identifies significant positive correlations between these factors and economic resilience. Practical implications of the findings suggest the necessity of enhancing digital infrastructure, cultivating digital talent through education, and fostering a collaborative digital ecosystem to stimulate innovation across sectors. These recommendations aim to fortify national economies against global uncertainties through strategic digital investments and advancements.

Hatching asynchrony affects intraspecific competition among larval mosquitoes

Abstract Aedes eggs may hatch in synchrony, yielding individuals of similar age and size, or asynchrony, yielding individuals of different ages and sizes, depending on rainfall. Multiple freshwater species have similar variation in developmental synchrony of immatures. We tested alternative hypotheses that asynchronous hatch modifies intraspecific competition among Aedes aegypti (L.) (Diptera: Culicidae) compared with synchronous hatch via: (1) priority effects; or (2) reduced temporal overlap. We placed pairs of newly hatched larvae into water‐filled vials with food at either the same time (synchronous) or 4 days apart (asynchronous) and recorded survival, sex, development time and wing length for the resulting adults. For second‐eclosing adults, asynchronous hatch yielded larger adult females compared to synchronous hatch, but there were no effects on male sizes, nor on survival or development times. For first‐eclosing adults, asynchronous hatch yielded both larger sizes and shorter development times for both sexes compared with synchronous hatch. These results are consistent with the hypothesis that hatch asynchrony reduced the impact of intraspecific competition, possibly by reducing the time that larvae co‐occurred. We found limited evidence for priority effects, suggesting that the dominant effect of hatch asynchrony of 4 days is reduced intraspecific competition, probably via reduced temporal overlap. These results suggest that priority advantage is only one possible effect of asynchrony and that there may be benefits to developmental asynchrony under certain circumstances. Further experiments with different degrees of asynchrony, at different resource levels, would enhance our understanding of intraspecific competition among larval mosquitoes and likely other freshwater taxa with variable hatch asynchrony.

Haze Management Competition and Industrial Green Transformation

To clarify the relationship between haze management competition and industrial green transformation, this paper is based on the theoretical perspectives of local government competition and environmental federalism, the specific form of haze governance competition is analyzed by applying the two-region spatial Durbin model, and then the impact of haze governance competition on industrial green transformation and its transmission mechanism is explored by constructing a spatial panel linkage model and adopting the generalized spatial three-stage least squares method. The empirical results show that, with the profound changes in the performance appraisal system since the 18th National Congress, the interaction of environmental governance strategies between geographically adjacent provinces is imitative. In contrast, that which is between economically adjacent provinces is a “race to the top”, and haze governance is conducive to promoting the development of industrial green transformation. Further research found that the competition of haze governance is heterogeneous, and smog control in the eastern region contributes to the green transformation of local industries, while smog control in the central and western regions inhibits their industrial green transformation, and haze governance mainly enhances industrial green transformation through the innovation compensation effect, the human capital effect, and the industrial structure optimization effect. Therefore, the central government should carry out overall planning for the industry, and local governments should strengthen the joint prevention and control of haze and promote technological innovation, to improve environmental quality and realize high-quality economic development.

Deposit Insurance and Bank Liquidity Creation: Evidence from a Natural Experiment in China*

AbstractIn this paper, we examine how the implementation of deposit insurance influences the impact of bank capital, excess lending, banking competition and monetary policy on liquidity creation of banks. Our examination uses China’s introduction of deposit insurance in 2015 as a natural experiment. We find that deposit insurance positively reinforces the effect of capital but weakens that of monetary policy on liquidity creation. We do not find that deposit insurance has a significant influence on the effects of excess lending and competition on the liquidity creation of banks. We also show that the implementation of deposit insurance has heterogenous effects on the liquidity creation of large and small banks.

Corporate Social Responsibility and Financial Performance : Moderating Impact of Product Market Competition

Corporate Social Responsibility and Financial Performance : Moderating Impact of Product Market Competition

Impact of Competition, Discipline and Religiosity on Academic Cheating in Undergraduates

Impact of Competition, Discipline and Religiosity on Academic Cheating in Undergraduates

The impact of industry competition on the value relevance of goodwill impairments across different information environments

Building upon prior studies that explore the impact of competition on financial reporting quality, this paper investigates the influence of industry-level competition on the value relevance of goodwill impairments. Additionally, it examines whether this impact is more pronounced for firms operating in countries with rich information environments. We analyze 21,224 firm-year observations from companies in 21 countries that reported under International Financial Reporting Standards (IFRS). We find that companies facing higher product market competition tend to report impairment losses that are relevant to investors’ equity valuation decisions. This is consistent with the notion that companies in competitive industries are subject to greater scrutiny and have fewer incentives to manipulate their impairment reporting. We also find that the impact of industry competition on the value relevance of goodwill impairments is more pronounced in the rich information environments of market-based economies than bank-oriented economies. These findings underscore the impact of competition and its interplay with the information environment on the market perception of accounting information that is subject to managerial discretion.

Impact of Competitiveness on Peru's Economic Growth: 2016-2022

Impact of Competitiveness on Peru's Economic Growth: 2016-2022

Financial inclusion, competition and financial stability: New evidence from developing economies

This study utilizes cross-country data from 2002 to 2019 from 60 selected developing countries to explore the impact of competition and financial inclusion on financial stability. Employing the system GMM estimator, compelling evidence is revealed, highlighting a number of key findings. Firstly, it is observed that financial inclusion has a weakening effect on financial stability within developing countries. Conversely, competition among these nations demonstrates a significant capacity to bolster financial stability. Additionally, the study underscores the pivotal role of financial development, identifying it as a primary driver that enables financial inclusion to positively influence financial stability within developing nations. Furthermore, the introduction of the square term of financial inclusion yields noteworthy insights, revealing a nonlinear relationship. Specifically, the findings suggest that strategic investments in the financial inclusion of developing countries have the potential to enhance financial stability up to a certain threshold. Therefore, for emerging economies seeking to fortify their financial stability, prioritizing efforts to augment financial inclusion is imperative. Over the long term, such endeavors have the potential to yield tangible improvements in financial stability.In conclusion, the research offers valuable policy implications. These include recommendations aimed at fostering greater financial inclusion within developing economies as a means of bolstering overall financial stability. By heeding these suggestions and implementing targeted policies, policymakers can work towards cultivating a more resilient and robust financial landscape within their respective nations.

Economies of Scale, Efficiency and Optimal Size of the Hospital

Hospitals are being expanded all over the world. Hospitals are becoming larger (i.e., increasing patient admissions each year) and more complex (i.e., offering a wider range of services to patients with more diverse medical care needs). In the hospital sector and other branches of the economy, economies of scale are important, according to which the volume of medical services can be increased by reducing average costs and increasing quality. However, measuring this relationship between the volume of medical services and costs is difficult because hospitals differ substantially in terms of specialization, patient composition, and other parameters that affect the volume of costs. The paper discusses the features of economies of scale in the healthcare sector and the dependence of the volume of medical services on costs and quality. Studies confirm that the influence of various factors on the costs and quality of medical services depends on the environment and the system of incentives in which hospitals operate. Relationships between patients and healthcare providers based solely on price negotiations do not ensure adequate healthcare quality. Due to informational asymmetry with respect to the real cost of hospital services and quality of treatment, medical service buyers cannot influence cost reductions and increase the quality of treatment, which increases hospital power. Thus, when evaluating the impact of hospital competition on costs and quality of care, we must remember that market mechanisms in health care do not always increase public welfare.

Product Market Competition and Stock Price Crash Risk: Evidence from China

Synopsis The research problem This study analyzes the relationship between product market competition (PMC) and stock price crash risk in China, especially for firms with weak corporate governance and a lower-quality information environment. Motivation Emerging capital markets like China have less-developed financial systems and institutions compared to developed capital markets like Europe and the United States, making them more susceptible to stock price crash risk. The impact of product market competition (PMC) on corporate decision-making has attracted considerable attention from scholars, especially given the increasingly intense and complex strategic competition in global markets and uncertainty in the world today. However, the effect of PMC on a firm’s stock price crash risk has not been thoroughly explored. Therefore, this study investigated how PMC affects managers’ tendency to hoard bad news and how this behavior contributes to the risk of stock price crashes. The test hypotheses We tested two competing hypotheses: PMC is negatively correlated with crash risk, and PMC is positively correlated with crash risk. Target population This study should be of interest to stakeholders, including firm managers, practitioners, regulatory authorities, policymakers, and investors. Adopted methodology This study employed ordinary least squares (OLS), difference-in-differences analysis (DID), and path analysis. Analysis Using a sample of Chinese A-share listed manufacturing firms from 2000 to 2021, this study found that competitive pressure from the product market encouraged managers to hide bad news, thereby increasing future stock price crash risk. Moreover, we performed additional tests to examine how PMC affected stock price crash risk. Findings We found robust evidence that PMC significantly increases stock price crash risk. Further tests showed that the effect of PMC on crash risk is more pronounced for firms with weak corporate governance and a lower-quality information environment. We also provide evidence that firms in highly competitive industries tend to disclose fewer negative words in the management discussion and analysis section of the annual report and fewer risk factors in the internal control report. Moreover, we show that operational risk is the underlying driver through which PMC affects crash risk.

Assessing Productivity Dynamics in the Indian Pharmaceutical Industry: A Comparative Analysis of the Foreign and the Domestic Ownership Influences

This study investigates the impact of competition (foreign vs. domestic) on the total factor productivity of domestic firms. We used two specific indicators to measure foreign and domestic competition in the Indian pharmaceutical industry: market shares and The Herfindahl-Hirschman Index, constructed for a five-digit NIC level, highlighting the intensity of product-level competition. The Levinsohn and Petrin methods calculate the total factor productivity, and dynamic panel data estimators are applied to estimate the model. The research findings indicate that foreign presence has a notable and statistically significant influence on the productivity levels of domestic firms. In contrast, the impact of domestic competition is found to be inconsequential. This research addresses the policy debate by providing convincing evidence that the existence of Multinational Enterprises (MNEs) can increase local business productivity through knowledge spillovers and competitiveness.

Optimizing firm performance through contingency factors, enterprise risk management, and intellectual capital in Southeast Asian mining enterprises

Enterprise risk management (ERM) is a crucial aspect of corporate operations. This study examines the impact of environmental uncertainty, industry competition, and firm complexity on Enterprise Risk Management implementation and firm performance in the Southeast Asian mining industry. Utilizing data from 205 mining companies listed on Southeast Asian stock exchanges from 2016 to 2022, the analysis employs panel data regression methods. The findings reveal that environmental uncertainty does not significantly affect ERM, while industry competition positively influences ERM but negatively impacts firm performance. Firm complexity positively affects both ERM and performance. ERM mediates the relationships between industry competition, firm complexity, and performance, while intellectual capital moderates the effect of ERM on performance. These results underscore the strategic importance of integrating ERM practices and developing intellectual capital to enhance firm performance amidst competitive and complex business environments. The study contributes to the literature by providing empirical evidence on the nuanced relationships between these variables in the context of the Southeast Asian mining sector and offers practical insights for policymakers and industry leaders.

Do global competitiveness factors impact the marine sustainability practices? An empirical evidence from fisheries sector

AbstractAccording to the research on fisheries, there are two main trade‐offs between these sustainability pillars. First, a fisheries industry's developing ecological health diminishes economic gains for fishermen. Second, individual fishermen's financial success undercuts fisheries communities' social goals. This paper aims to investigate the dynamic impact of global competitiveness on the sustainability of the fisheries industry in 27 European countries by considering the production of fisheries, enabling environments, ecosystems for innovation, market size, human capital, and economic growth between 1990 and 2022. At higher quantiles, the findings showed a strong positive association between enabling environment and fisheries sustainability by adopting MMQR with fixed effects, the new method of moments quantile regression. Additionally, in EU27 nations, the impact of human capital was positive and substantial from the first to ninth quantiles. Notably, the findings show that the EU14 developed nations have a greater level of development than the EU13 underdeveloped countries, which considerably benefits fisheries sustainability. Market size and economic growth were also found to condense fisheries sustainability in EU14 developed and EU13 developing countries, supporting the growth hypothesis for fisheries‐producing countries. Innovation ecosystem was found to increase fisheries sustainability across all quantiles. Notably, the findings show that the significant beneficial impact of the innovation ecosystem, market size, and economic development on the sustainability of fisheries is more significant in the emerging nations of the EU13 than in the developed countries of the EU14. With effective and environmentally friendly technology, policymakers may boost market competitiveness in the EU14 and EU13 countries and advance sustainable development objectives.

Unveiling the impact of foreign competition on the bond market: Insights from S&P debt ratings

This study investigates the influence of foreign competition on U.S. firms’ debt ratings. The findings reveal a significant downgrade in ratings with increased foreign competition, in particular affecting firms with prospector strategies, low organizational capital, high information asymmetry, weak governance, and reshaping creditworthiness assessment.

Research on the Role of Guiding Students to Participate in Skills Competitions on the Development of Young Teachers in Vocational Colleges

This paper explores the role of guiding students to participate in skills competitions on the development of young teachers in vocational colleges. We investigate the impact of skills competitions on the consolidation of professional knowledge, development of innovation capabilities, improvement of hands-on abilities, and enhancement of communication skills with students. The results of this research demonstrate that skills competitions have a positive influence on the professional growth of young teachers. The consolidation of professional knowledge, development of innovation capabilities, improvement of hands-on abilities, and enhancement of communication skills collectively contribute to the effectiveness of young teachers in vocational colleges. It is recommended that vocational colleges prioritize and support the participation of young teachers in skills competitions to foster their professional development.

Innovation waves: Analysis and modeling of patents on ultrasound applications in food processing

AbstractUltrasonication is an innovative green technology with various applications in the food industry. Notably, patent analysis from a technological perspective is essential for monitoring market trends and identifying the technological stage through life cycle modeling. Thus, this study aimed to conduct an investigation using patent documents on the application of ultrasound in the food sector. The Espacenet® database was used with the keywords “Food Processing,” “Ultrasound,” and “Ultrasonication,” along with the code A23. A total of 140 documents were evaluated, with China being the main applicant country. Fruits and vegetables and bioactive compounds were the key technological sectors. Food preservation and extraction processes emerged as the primary applications. The involvement of ultrasound technology in the food industry is entering the maturity stage, as demonstrated by the function adjusted to the BiDoseResp model. This result implies further technological and market development in the food industry in the coming years.Practical applicationsThis review addressed the evolution and the current scenario of ultrasound applications in food processing through patent documents deposited between 1979 and 2022, which are rich technological information sources. This approach identified the main technological sectors of food and applications in which ultrasound is most used, as well as the main institutions, inventors, and patent‐filing countries. The major challenges, impacts of the COVID‐19 pandemic, and market trends were also discussed. Through mathematical modeling of patent mapping, it was detected that ultrasonication is integrated into the food sector while maintaining a highly competitive impact. This development indicates a future with significant advancements in the development of ultrasound in the food industry, with increasing participation of emerging countries in technological monopolies and a trend of associating ultrasound with non‐thermal emerging technologies in patented inventions. Food waste, food printing, and food for people with swallowing difficulties are potential areas for further development.

The effect of informal competition on the performance of formal firms: a systematic review of the literature

PurposeThe purpose of this paper is to examine the empirical literature on the effects of informal competition on firm performance and provide directions for future research.Design/methodology/approachWe search the Scopus and Web of Science databases and adopt a specific protocol to perform a systematic review of the literature. We screen 536 documents and apply three inclusion criteria for filtering.FindingsWe identify the impact of informal competition on nine types of formal firms' performance. We assess the findings according to the explanatory and response variables and the data samples of the articles reviewed. We find that five areas of focus are under-researched due to analyses of country or region-specific data, or lack of consensus because of contradicting findings.Originality/valueTo the best of our knowledge, this is the first review of the empirical literature on the effects of informal competition on the performance of formal firms.