Product Market Competition Research Articles

Teff: Its applicability in various food uses and potential as a key component in gluten-free food formulations—An overview of existing literature research

In recent years, there has been a significant increase in demand for gluten-free foods. This rise can be attributed to a growing number of individuals opting for gluten-free diets due to factors such as gluten sensitivity and celiac disease. Interest in teff has also increased markedly due to its high protein content, balanced amino acid composition, and rich nutrient contents including fiber, iron, and calcium, along with its gluten-free nature. Additionally, teff exhibits positive functional properties that contribute to improving texture, moisture retention, and shelf life in gluten-free products. Its mild flavor profile allows for versatile applications across a spectrum of culinary applications, enhancing the sensory appeal and taste of gluten-free offerings. This makes it a suitable alternative to wheat and other grains in food applications for individuals with celiac disease. Overall, integrating teff into gluten-free formulations presents an attractive opportunity to enhance the nutritional quality, sensory experience, and market competitiveness of gluten-free products, catering to the diverse needs and preferences of consumers seeking gluten-free alternatives for health, dietary, or lifestyle reasons. Further research and innovation in teff-based product development are crucial to fully unlock its potential and promote inclusive, sustainable growth in the gluten-free food sector. Therefore, these attributes underscore teff's promising role in the global food and beverage industries.

Microorganisms in Fermented Foods and Their Effects on the Human Body

In recent years, microorganisms in fermented foods have shown an important role in regulating human health. Studies have shown that probiotics have significant health benefits in fermented foods, such as improving gut health, stimulating immune function, and promoting metabolism, and mental health. Specifically, lactic acid bacteria in yogurt can increase the number of beneficial bacteria in the intestines and reduce the growth of pathogenic bacteria, and yeasts such as Saccharomyces cerevae have multiple health effects on intestinal microbiota protection and anti-inflammation. In addition, various enzymes and metabolites produced by Aspergillus during fermentation process can improve the nutritional value of food. However, although lots of research has been done, the understanding of the microbial mechanism under different fermentation conditions is still insufficient. In this article, the types and influencing factors of microorganisms in yogurt, wine and seasoner were reviewed. The effects of temperature, pH value, fermentation time and other conditions on microbial activity and product quality were analyzed. The results showed that suitable fermentation conditions could significantly increase microbial activity, improve product flavor and health function, and provide a theoretical basis for optimizing the production process of fermented food. The article provides a theoretical basis for improving the fermented food production process, thus helping to improve product quality and market competitiveness. However, this article has some limitations like the lack of understanding of interactions between different microorganisms. Future research should focus on examining the collaborative relationship between these microbes to improve the health benefits and production efficiency of fermented foods.

Agency conflicts, product market competition and investment efficiency: new evidence from emerging market

PurposeThis study examines the influence of product market competition on investment inefficiency of Indian firms in context of agency problems. Additionally, this study also investigates whether intense competition is a substitute for or complementary to corporate governance in reducing investment inefficiency of firms.Design/methodology/approachUtilizing the residuals extracted from Biddle et al. (2009) investment model, investment inefficiency, overinvestment and underinvestment are measured for 506 non-financial Indian listed firms with 6,998 firm-year observations from 2009 to 2022. Product market competition is measured using various proxies such as the Herfindahl–Hirschman index, top-four firm concentration ratio, total number of firms in industry, industry market size, weighted average of entry costs and research and development (R&D) to sales ratio. Firms' internal governance is measured using a newly corporate governance index developed with 65 new governance stipulations. Several pooled ordinary least squares (OLS) panel regressions were estimated involving investment inefficiency of firms, product market competition, governance index and firm-specific variables. Endogeneity issues were addressed through two-stage least squares. Robustness checks were also conducted using a two-step system generalized method of moments (GMM).FindingsThe main finding of the study indicates that heightened product market competition reduces investment inefficiency, overinvestment and underinvestment among the selected Indian firms suggesting that firms facing intense competition are less prone to invest below or above optimal levels. This is primarily because in highly competitive industries, managers face greater liquidation risks, prompting more efficient capital investment decisions. The results also indicate that robust corporate governance significantly mitigates investment inefficiencies in non-competitive industries compared to competitive ones suggesting heightened competition reduces managerial slack, resulting in diminished benefits from good governance in competitive settings. Overall results indicate a substitution effect between corporate governance and competition in reducing investment inefficiency, with robustness across various empirical specifications, industry classifications and alternative competition and inefficiency measures.Practical implicationsThe evidence from this work emphasizes the pivotal roles of market competitiveness and corporate governance in shaping investment efficiency. Regulators must closely monitor monopolistic behaviors to safeguard stakeholder interests, enhance investment efficiency and foster value creation. Recognizing the positive impact of market competition, firms should prioritize initiatives to promote industrial openness and intensify competition while strengthening market mechanisms. Policymakers should consider implementing competition-centric governance policies, such as deregulation and antitrust laws, to stimulate market competition. These measures can mitigate governance-related costs and promote a competitive marketplace.Originality/valueThis study provides fresh evidence concerning the effects of product market competition on investment efficiency of Indian firms under new governance norms, an unexplored area in India as most of the existing work has primarily examined the association between competition and investment levels. To best of our knowledge, this is one of the earliest studies demonstrating the substitution effects of competitiveness and governance systems on lowering investment inefficiency suggesting a significant influence of corporate governance in non-competitive industries. Finally, this study contributes to the field of methodology by developing a new firm-specific governance index based on 65 governance indicators.

The role of accounting conservatism in corporate innovation

AbstractWe provide evidence to determine whether conservative financial reporting is associated with firm‐level investments in innovation in China. We find that firms adopting a more conservative reporting policy invest substantially more in innovative projects. We also find that conservative reporting practices improve the association between executives' pay‐for‐performance and a firm's innovation efforts. The association between conservatism and firm‐level innovation is concentrated in firms that are in the non‐high‐tech industries, that have higher financial leverage and more product market competition. Our paper adds to public policy by providing evidence of the beneficial influence of accounting conservatism on higher innovation investment.

How CEOs’ overconfidence influences financial statement comparability under competition

This research investigates the relationship between product market competition, Chief Executive Officers’ (CEOs) overconfidence and financial statement comparability. It presents evidence supporting the argument that product market competition diminishes financial statement comparability consistent with the agency problem. Furthermore, it suggests that this negative relationship intensifies when CEOs display overconfidence. A tendency to underestimate risks and have an exaggerated view of one's abilities are indicators of overconfidence leading to the comparability of financial statements. This study analyzes 53,233 data observations spanning from 1992 to 2022 using firm and year-fixed effects panel regressions. The empirical findings confirm a negative relationship between product market competition and financial statement comparability. Moreover, this negative relationship is more pronounced under the leadership of overconfident CEOs. These findings remain robust even after we address other potential measurement concerns related to product market competition. Ultimately, this study highlights the necessity for regulatory institutions to closely monitor firms operating in competitive markets particularly those led by overconfident managers. Additionally, policymakers and regulatory bodies should exercise increased scrutiny when evaluating the financial reporting of such firms to enhance investor confidence. Future research could investigate alternative methods for deriving overconfidence measures from publicly available databases and examine how regulatory and institutional differences in various countries impact the quality of financial reporting including financial statement comparability.

Development History and Enlightenment of Electric Vehicles Based on Tesla's Financial Perspective

Facing the continually intensifying global energy crisis and environmental pollution challenges, electric vehicles, as an important representative of green transportation, are gradually becoming an important direction for the transformation and upgrading of the automotive industry. As a pioneering figure within the electric vehicle industry, Tesla's development history and financial performance are of great significance for understanding the current situation and future of the entire industry. This article first outlines the history of the development of electric vehicles and Tesla. Then, based on the current development status of Tesla at that time, Tesla's financial indicators were analyzed. Finally, four suggestions are proposed: firstly, electric vehicle companies should continue to increase investment in technology research and development, improve product performance and market competitiveness; Secondly, focus on cost control and operational efficiency improvement to achieve economies of scale; Thirdly, actively explore domestic and international markets, expand sales channels and market share; Fourth, pay attention to the development trends in cutting-edge fields such as energy storage and autonomous driving, and seize the market opportunities in the future; Finally, strengthen brand building and marketing to enhance brand influence and consumer recognition.

Capital market opening, digital transformation and corporate risk-taking ——empirical evidence from Shanghai Shenzhen-Hong Kong stock connect

"Shanghai-Hong Kong stock connect" and "Shenzhen-Hong Kong stock connect", as important policies for the two-way opening of China's capital market, have positive effects on expanding investment channels for investors and improving market liquidity. Taking Shanghai Shenzhen-Hong Kong stock connect as a quasi natural experiment, this paper examines the impact of capital market opening on corporate risk-taking and its mechanism by using a multi period DID model. The empirical results show that the Shanghai Shenzhen-Hong Kong stock connect can reduce corporate risk-taking, and digital transformation plays a positive moderating role between the two; the mechanism analysis finds that the Shanghai Shenzhen-Hong Kong stock connect reduces corporate risk-taking by increasing analysts' attention, and this indirect impact process is also positively moderated by digital transformation. The heterogeneity test finds that the impact of Shanghai Shenzhen-Hong Kong stock connect on corporate risk-taking is mainly reflected in the companies with higher product market competition and faster regional marketization process. The above conclusions provide empirical evidence for the effectiveness of the capital market opening policy at micro level, and provide enlightenment for the role of digital transformation in promoting healthy development of the capital market.

Evaluating the Impact of Mini-Competition on Pharmaceutical Procurement: Challenges, Risks, and Regulatory Implications in Indonesia

This study evaluates the impact of the mini-competition method in pharmaceutical procurement in Indonesia, focusing on its challenges, risks, and regulatory implications. Mini-competition, a procurement method designed to promote competitive pricing in e-purchasing, has been introduced to streamline the procurement process, especially for essential goods such as pharmaceuticals. However, this method faces legal and practical challenges, including risks of fraud, reduced competition, collusion, and issues concerning product quality and innovation. The legal framework governing mini competition, including Presidential Regulation No. 12 of 2021, is analyzed to identify potential weaknesses in ensuring transparency and accountability. The research also includes a case study of pharmaceutical product procurement, highlighting the significant price reductions resulting from mini competition but revealing adverse effects on industry sustainability. The analysis of the cost structure of pharmaceutical companies shows that continued price reductions may force companies to cease operations due to unprofitability. Drawing on international case studies, this study concludes that while mini competition can lower procurement costs, it also poses significant risks to product quality, innovation, and market competition. Traditional tender methods are proposed as a more balanced and sustainable approach for pharmaceutical procurement, emphasizing the need for transparent and comprehensive evaluation criteria.

Forecasting disorientation in the tax avoidance map: Tax haven subsidiaries and analyst forecasts

In the context of economic globalization, China has actively encouraged its enterprises to “Go Global” to enhance their core competitiveness. However, in recent years, many companies have been drawn to the unique features of tax havens, establishing subsidiary in these regions to exploit regulatory and institutional arbitrage rather than focusing on genuine production and operations. This study uses panel data from Chinese listed companies from 2007 to 2022 to investigate the impact of tax haven subsidiary layout on analyst forecast accuracy and the underlying mechanisms. Our findings show that tax haven subsidiary layout significantly reduces analyst forecast accuracy. This negative effect is primarily driven by increased information asymmetry and heightened operational risks caused by tax haven subsidiary layout. Moreover, the impact is more pronounced in firms with higher controlling shareholder tunneling, lower media attention, stronger product market competition, and weaker tax enforcement. Our research contributes to a deeper understanding of the adverse effects of tax haven subsidiary layout, offering crucial insights for promoting efficient capital flow and sustainable economic development in emerging markets.

Product market competition and disclosure deficiencies in different mandatory filing types: Evidence from SEC comment letters

Using firms’ receipt of SEC comment letters, this study investigates their selection of mandatory filing types when producing deficient disclosures in response to the product market competition. Empirical evidence reveals a positive association between two firm-level measures of product market competition and a firm’s likelihood of receiving comment letters for non-10-K filings. These patterns are particularly pronounced when firms face a higher likelihood of new market entrants or operate as industry followers. Additionally, firms receiving comment letters for non-10-K filings experience increased sales and market share in the subsequent year. Overall, these findings suggest that firms strategically make deficient disclosures in non-10-K filings to minimize regulatory costs.

The gender gap in executive promotions

This paper examines whether there is a gender promotion gap among executives. Using a comprehensive dataset of executives, I find that women’s promotion probability is 16% lower than men’s after controlling for educational and employment background, age, function, rank, and firm characteristics. The gap occurs partially because women are clustered in positions that support the business rather than positions with profit-and-loss responsibilities. Additionally, my analysis shows that product market competition, public attention on gender diversity, a respectful corporate culture, and board gender diversity alleviate the gender promotion gap. These findings support the notion that demand-side factors continue to hinder women’s advancement to leadership positions.

Corporate risk disclosure in response to heightened entry threat: Evidence from a quasi-natural experiment in China

Using the deregulation of market entry barriers in China as a quasi-natural experiment, this study examines how increased entry threats affect incumbent firms' risk disclosure. We find that firms respond by increasing their market-related risk disclosures. This effect is stronger among firms facing higher economic uncertainty, lower financial constraints, greater product market competition, and higher information transparency. Mechanism analysis shows that increased risk disclosure weakens the link between deregulation of market entry barriers and new firm entry, suggesting that such disclosures can effectively deter potential competitors. Moreover, while market reactions to market risk disclosures are neutral, they are negative for operational and financial risk disclosures. Our findings suggest that firms strategically disclose market risks to mitigate entry threats, thus enhancing their resilience and adaptability in dynamic markets.

Textual Dimensions of Sustainability Information, Stock Price Informativeness, and Proprietary Costs: Evidence from Integrated Reports

We examine whether integrated report quality, IRQ, is negatively associated with stock price synchronicity, an inverse measure of firm-specific information, and the extent to which the relation between IRQ and synchronicity is attenuated by proprietary costs. We measure IRQ using machine-based textual analysis along four dimensions: textual attributes, topical content, integrated reporting capitals, and financial versus sustainability information. We find that measures of IRQ based on seven textual attributes are negatively related to synchronicity, which is consistent with higher quality text containing more firm-specific content. Using PhraseLDA to identify topics in integrated reports, we find that contents related to the three most common categories—governance, performance, and risks and opportunities—are negatively associated with synchronicity. We find similar results for all integrated report capitals, except manufactured capital. Further, we find that sustainability information has a larger negative association with synchronicity than financial information. We also find that proprietary costs stemming from product market competition attenuate the association between IRQ and synchronicity, which suggests the informativeness of integrated reports varies with a firm’s competitive environment. Our results may inform the International Sustainability Standards Board as it considers the role of the Integrated Reporting Framework in developing sustainability standards.

Family Ownership, Product Market Competition and Firm Performance: Empirical Evidence From Vietnam

Family Ownership, Product Market Competition and Firm Performance: Empirical Evidence From Vietnam

Product Market Competition and Convertible Debt Financing

Product Market Competition and Convertible Debt Financing

Effect of ESG performance on stock price crash risk: evidence from China

ABSTRACT This study investigates the impact of ESG performance on stock price crash risk using a dataset of Chinese-listed firms in the period 2015 – 2020. Empirical evidence reveals a negative association between ESG performance and stock price crash risk, particularly under high product market competition conditions. Mechanism analysis suggests that ESG performance reduces stock price crash risk by alleviating maturity mismatch and optimizing debt maturity in investment and financing, but only when market competition is intense. These findings align with the resource dependence theory, indicating that strong ESG performance enhances a firm’s ability to acquire resources and mitigate stock price crash risk in highly competitive environments. Consequently, ESG performance not only augments a firm’s competitive advantage but also serves as a risk reduction tool, enabling investors to construct more sustainable investment portfolios.

Research on Pattern Generation and Innovative Design of Chinese Mongolian Embroidery based on AIGC Technology

This study aims to investigate the potential of generative artificial intelligence (AI) technology in the generation and innovation of Mongolian embroidery patterns. It seeks to address the limitations of traditional embroidery pattern design, which is often time- consuming and inefficient, and to enhance the market competitiveness of Mongolian embroidery products. A substantial corpus of Mongolian embroidery patterns has been assembled, and image processing software has been employed to enhance the processing. A generative adversarial network (GAN) and a variational self-encoder model are constructed to learn and train Mongolian embroidery patterns, with the objective of generating new patterns that exhibit a combination of traditional style and modern design concepts. The experimental results demonstrate that the Mongolian embroidery patterns generated by AIGC technology retain the defining characteristics of traditional patterns in terms of form, while also exhibiting a greater degree of diversification in design style through the creative generation of the model.

Internalizing Peer Firm Product Market Concerns: Supply Chain Relations and M&A Activity

ABSTRACTWe explore whether firms internalize the product market concerns of their economically linked peers by examining merger and acquisition decisions in the context of customer–supplier relations. Given the extensive transfer of capital, knowledge, and information between merging parties, we hypothesize that customers’ competition concerns discourage their suppliers from engaging in vertically conflicted transactions (i.e., acquisitions of their customers’ rivals or suppliers to those rivals). Consistent with our hypothesis, we find that suppliers are less likely to engage in such transactions when their customers are subject to higher product market competition. Moreover, the effect is more pronounced when suppliers and customers have greater relationship‐specific investments and when customers face heightened proprietary information concerns. Using plausibly exogenous variation in common ownership between customers and their rivals as a shock to customers’ competition concerns, we conclude that the link between customers’ competition concerns and supplier acquisitions is likely causal. Our findings suggest that firms alter their investment and strategic decisions in response to the product market competition concerns of their economically related peers.

Product Market Competition, Mergers and Acquisitions, and Covenant Redesign

Abstract Industry competition shocks are major drivers of mergers and acquisitions (M&A). We document strong positive effects of competition shocks on M&A-related covenant redesign. Acquiring firms in high-competition environments are significantly more likely to undertake tender offer bond repurchases and reduce restrictions on mergers, investments, payouts, and financing, but increase change-in-control covenants. This effect is stronger for larger, more profitable firms. Moreover, announcement returns from M&A transactions of redesigning firms in more competitive settings are significantly higher, while acquisition deal premiums are lower. Our study shows the significant effect of industry competition shocks on debt recontracting in M&A. (JEL G32, G34)

The moderating role of corporate governance mechanism on the relationship between product market competition and earnings management: evidence from Bangladesh

ABSTRACT This article evaluates the moderating effects of corporate governance mechanisms on the relationship between earnings management and product market competition. Market concentration, as measured by the HHI has shown significantly negative association with accrual and real earnings management. In contrast, product market power, as measured by the industry size, demonstrates a significant positive association. The result further illustrates that the cost of industry entry significantly impacts accrual earnings management. The corporate governance mechanism (CGI) significantly decreases earnings manipulation. Moreover, the corporate governance mechanism (CGI) considerably moderates the association between market concentration, industry entry cost, and earnings management. Compared to high and low-competitive industries, the impact of market competition on earnings management in moderately competitive industries is more significant. After establishing the Bangladesh Competition Commission, product market competition has shown more impact on earnings management. This research is the initial attempt to examine the moderating effect of corporate governance mechanisms on the relationship between product market competition and earnings management from the perspective of Bangladesh.