Proxy For Competition Research Articles

PENGARUH KOMPETISI BANK TERHADAP STABILITAS SISTEM KEUANGAN PERBANKAN (STUDI KASUS PADA KBMI IV TAHUN 2019-2022)

The emergence of banking as an intermediary institution plays a very important role in the economy because it is the heart that must pump "money" and distribute it to all organs that need the money. Therefore, it is very important to maintain the stability of the banking financial system. The development of the banking system can trigger competition in the banking industry which can affect banking stability. This research was conducted to determine the effect of bank competition on the stability of the banking financial system. This research focuses on KBMI 4 data which is a large bank HHI index, market share and Loan to Deposit Ratio (LDR) used as a proxy for competition and Non-Performing Loans (NPL) as a proxy for banking financial stability. The analysis technique used is Panel Data Regression with KBMI 4th ​​quarter data for 2019-2022. Of these three variables, the HHI index and Loan to Deposit Ratio (LDR) variables have a significant effect on Non-Performing Loans (NPL). Meanwhile, the market share variable has no significant effect on Non-Performing Loans (NPL).

Impact of Transparency and Disclosure (TD) on the Market Valuation of the Firms in India: The Moderating Role of Competition

The competitive business environment is new world order, which applies to firms worldwide. Corporate transparency and disclosure (CTD) impact the market valuation of the firms. However, the impacts of CTD on the value in the competitive business environment are not explored well, which is the current study’s aim. Panel data of 76 diversified Indian firms are gathered. The sample (76 firms) is shortlisted from the BSE 100 index for 10 years (2010–2019). The static panel data are applied to the data. It is found that competition negatively (the learners’ index is an inverse proxy of competition) moderates the CTD’s impact on the valuation of the firms. This finding implies that a low level of competition in the business environment enhances the CTD’s impact on the firm’s valuation more than a high level of competition. Moreover, no other study finds a nonlinear positive association of CTD on the valuation and the moderation by competition. The study’s unique outcomes that CTD is effective for valuation only when it reaches a threshold level (found through nonlinear association) and a low level of competition can enhance CTD’s impact on the valuation is a significant contribution of the study.

When Daces Bite Deeper than Sharks – Does the SMEs Public Subsidy Dose Matter?

Abstract One of the EU's main priorities is to boost the competitiveness of its member states through subsidies from the European Structural Funds. As SMEs are key elements of competitiveness, their support through various subsidy programmes is important. However, as our research shows, the distribution of funds among SMEs is highly unequal. While some SMEs are very successful in obtaining subsidies, others (especially the smallest ones) are not. Using a robust dataset of Czech companies, we have identified subsidy ‘sharks‘ receiving multiple times more funds, compared to mediocre ‘salmons‘ and lowly supported ‘daces‘. While using counterfactual design with control for a subsidy dose and taking labour productivity as a proxy for competitiveness, we have found out that the subsidy dose really matters. It seems that the higher the dose, the lower the impact on competitiveness. Since, on average, subsidies led to higher competitiveness of beneficiaries, the subsidy daces significantly outpaced sharks. From a policy perspective, limiting support per beneficiary could lead to higher effectiveness of support programmes. This study also highlights the importance of the subsidy dose in evaluation practice and research.

The Impact of Market Maker Competition on Price Efficiency Features in the Tunisian stock Market

The purpose of this study — is to determine the relationship between market maker competition and stock price efficiency in TSE (Tunisian Stock Exchange) market. The proxy for competition was determined as the number of market makers and the parameters investigated were transaction costs, information asymmetry and profit. The high positive correlation between competition and stock price efficiency is demonstrated by the negative impact of competition on all the variables studied. In addition, the price efficiency increased considerably after the introduction of new market makers by using the difference-in-difference (DID) model. Also, the competition between market makers has a significant negative impact on price efficiency through transaction costs, asymmetry information and level of experience. Thus, it can be concluded that the stock price efficiency can be improved by increasing the competition of market makers in Tunisia.

Introducing ViNSAR: Dyadic Data on Violent Non-State Actor Rivalry

A growing line of research examines causes and consequences of militant group competition. However, empirical work on these topics has limitations. Most quantitative research uses relatively rough proxies for competition, such as counts of groups in a country. Other work uses dichotomous indicators, ignoring the intensity or degree of rivalries. Additionally, many studies examine either terrorist organizations or rebel groups, overlooking cross-type rivalry (e.g., terrorist vs. rebel). We address these issues by introducing time-varying dyadic rivalry data on hundreds of groups – rebels, terrorists, and pro-government militias – in Africa and Asia, 1990-2015. Rivalry levels include denouncements, threats, and violence. After presenting the data, we test the “outbidding” hypothesis: the notion that inter-organizational competition leads to more terrorism. This argument has found support in qualitative analyses, but quantitative tests using rivalry proxies show mixed results. Using our data we find support for the hypothesis. We conclude with research questions that could be addressed with the data.

Competition and banking efficiency in the WAEMU: The role of multinationals and institutions

This paper analyzes the effect of competition on bank efficiency in the WAEMU, taking into account the role of multinational banks and institutional quality, using data on 141 banks from 2000 to 2019. Using Lerner then Boone indices as a proxy for competition, we apply the One-step procedure, then the 2SLS-IV to control for endogeneity, the Tobit to control for the censored dependent variable, and the GMM for robustness check. The results show that competition negatively affects bank efficiency according to the current environment and structure of the WAEMU banking system. However, this relationship between competition and efficiency is non-linear and subject to a high threshold of competition. Furthermore, the results show that multinational banks are generally less efficient but more resilient to competition due to their level of capitalization, their ability to invest in innovation, and their networks. The estimates also show that corruption and political instability reduce bank efficiency and reinforce the negative effect of competition on efficiency. The relevant authorities should continue to advocate for a better institutional and political environment to ensure that the WAEMU banking system moves toward a first order optimum.

Sheltered or suppressed? Tree regeneration in unmanaged European forests

Abstract Tree regeneration is a key demographic process influencing long‐term forest dynamics. It is driven by climate, disturbances, biotic factors and their interactions. Thus, predictions of tree regeneration are challenging due to complex feedbacks along the wide climatic gradients covered by most tree species. The stress gradient hypothesis (SGH) provides a framework for assessing such feedbacks across species ranges, suggesting that competition between trees is more frequent under favourable conditions, whereas reduced competition (i.e. positive interactions) is more likely under climatic stress. Moreover, tree life‐history strategies (LHS) may shed light on how and whether the SGH explains regeneration of different tree species. To address these topics, we developed statistical models based on >50,000 recruitment events observed for 24 tree species in an extensive permanent plot network (6540 plots from 299 unmanaged European temperate, boreal and subalpine forests) covering a wide climatic gradient. We found that the effects of Leaf Area Index (as a proxy for competition) on tree recruitment changed along climatic gradients but in a species‐specific manner. Competition predominates, with its intensity decreasing under stressful conditions for most species, as predicted by the SGH. However, positive interactions were only evident for a few species. Additionally, the ability of the SGH to explain patterns of competition and positive interactions across the gradients differed among species, with some differences and exceptions that may be related to varying LHS. Synthesis. Our study shows that competition between trees toward climatic stress decreases systematically but depends on species stress tolerance to climate and shade. These findings explain within‐ and between‐species differences in tree recruitment patterns in European temperate forests. Moreover, our findings imply that projections of forest dynamics along wide climatic gradients and under climate change must accommodate both competition and positive interactions, as they strongly affect rates of community turnover.

Exploring the nexus between competition and the sustainable development goals in OECD countries

AbstractIn recent years, the OECD has been embroiled in discussions on the role of competition law in achieving the sustainable development goals (SDGs). However, it is crucial to understand whether the SDGs and competition work in harmony or are at odds before devising the best strategies for tackling sustainability challenges in competition laws and policies. For this purpose, this paper aims to empirically explore the interplay between sustainability and competition to fill the gap between economic theory and observed data through a study of a panel of 18 OECD countries from 2000 to 2019. The non‐declining inclusive wealth approach serves as the foundation for our model to evaluate sustainability. The SDG Index, which incorporates the socio‐economic and environmental aspects of sustainability, is used as a gauge of the SDGs' achievement, while the Index of Economic Freedom is used as a proxy for competition. The results of the feasible generalized least squares and panel‐corrected standard errors (PCSE) methods reveal that competition has no effect on the SDGs. Our empirical findings also show that the achievement of the SDGs is positively impacted by per capita gross national income and negatively impacted by population growth. The PCSE method's results indicate that the SDGs are not significantly affected by natural capital depletion, as measured by natural resource rents. Besides, the panel causality analysis confirms the existence of a causal relationship between the SDGs and competition. Our empirical results have two implications. First, they show that competition laws are still far from being an effective tool capable of achieving the SDGs. Second, they drive the competition authorities of OECD countries to devote greater efforts to sustainability‐related issues in the enforcement of competition law.

Taxas de administração de fundos: o papel da concorrência da indústria e do sentimento do investidor

Abstract This article analyzes the influence of industry competition and investor sentiment on the likelihood of change in investment fund management fees in Brazil. Due to the wide variety of existing funds, with various characteristics and objectives, there may be significant differences in the fees observed. Thus, it is worth analyzing the factors that influence the amount of fund management fees charged, since the literature highlights that the payment of fees is related to fund performance. Also, it is observed that the Brazilian fund industry, despite having a large number of available funds, is still concentrated in few management firms, which is an indication that there is a low competition level. In practical terms, this investigation may be useful to investors in the fund selection process, since the management fee represents one of the main costs an investor faces when investing in this industry. The results point out the importance of adopting greater transparency in the disclosure of fees by financial institutions, since there are indications that the amounts charged are influenced by the characteristics of funds and investors. The methodology adopted involves Logit/Probit regression models, which had changes in the management fee as an explained variable and, as explanatory variables, the proxies of competition and investor sentiment, in addition to other control variables. It was observed that the investor sentiment proxy was significant in explaining the probability of change in management fees, mainly for setting higher fees. However, no statistical significance was observed for industry competition. This research innovates by analyzing the role of industry competition and investor sentiment on the probability of changing management fees, thus contributing to fill a gap found in the Brazilian national literature.

Integrating effects of neighbor interactions for pollination and abiotic resources on coffee yield in a multi‐strata agroforest

AbstractAnimal‐pollinated plants interact with neighbors for both abiotic resources and pollination, with consequences for reproduction and yield. Yet few studies have compared the relative magnitude of these effects, particularly in agroecosystems. In vertically stratified communities, such as agroforests, neighbor effects may be stratum‐dependent. Understanding the net effects of neighbors on crop yield is important for managing multifunctional agroecosystems to simultaneously support production and biodiversity. This study evaluated the effects of neighboring plants on pollen deposition, fertilization, and yield in Coffea arabica in a shaded organic coffee farm with high non‐crop plant abundance and diversity in Chiapas, Mexico. We assessed the impact of (1) floral resources at three vertical strata (herbs, coffee bushes, and canopy trees) on stigma pollen load (a measure of interaction for pollination), and (2) floral density and canopy cover (proxies for competition for abiotic resources) on yield (final fruit set and per‐fruit weight), using structural equation modeling to evaluate the relative effect of each interaction type. Coffee competed for pollination with neighbors (conspecifics and heterospecifics) across strata. Pollen load influenced final fruit set, but the effect of neighbor competition for pollination was weaker than effects mediated by interactions for abiotic resources. Effects of interactions for abiotic resources were heterogeneous across strata, with negligible effects of herb‐layer or coffee flower density but net positive effects of canopy trees on final fruit set. Overall effects of neighbors on coffee yield were weak, suggesting that coffee agroecosystems can be managed to maintain high plant density and diversity without sacrificing yield.Abstract in Spanish is available with online material.

Sexual selection towards a protamine expression ratio optimum in two rodent groups?

Post-copulatory sexual selection is thought to influence the evolution of genes involved in reproduction. However, the detection of straightforward effects has been proven difficult due to the complexity and diversity of reproductive landscapes found in different taxa. Here, we compare the possible effect of relative testes mass as a sperm competition proxy on protamine genotype (protamine 1/protamine 2 ratio) and the link to sperm head phenotype in two rodent groups, mice, and voles. In mice, protamine expression ratios were found to increase from low values toward a 1:1 ratio in a positive association with testes mass, and relative sperm head area. In contrast, in voles, decreasing protamine expression ratios were found in species with larger testes but, surprisingly, they range from high values, again toward a 1:1 ratio, and showing a negative correlation with relative sperm head area. Altogether, we found differences in the way protamines seem to be selected and involved in adaptations of the sperm head in voles and mice. However, sexual selection driven by sperm competition seems to exhibit a common evolutionary pattern in both groups toward an equilibrium in the expression of the two protamines.

Does cross-border banking enhance competition and cost efficiency? Evidence from Africa

Over the last two decades, the unprecedented expansion of cross-border banking on the African banking market has raised concern about their effects on host countries’ markets. This paper investigates to what extent this expansion has affected competition and cost efficiency in the African banking market using a sample of 429 active commercial banks from 2000 to 2015. Results show that CBB activities enhance competition, mainly driven by African CBB. At the regional scale, these effects are more substantial in Sub-Saharan Africa (SSA) because African CBBs have more expanded their activities in SSA. We also document that more efficient banks alleviate the competition induced by the expansion of African CBBs. The latter exhibit lower efficiency and therefore do not encourage bank efficiency. This study further shows that macroeconomic conditions and institutional variables are essential drivers of bank competition and cost efficiency in Africa. These results are robust to alternative estimation techniques (system-GMM, Quantile regression-Adaptative MCMC, Matching) and proxies of competition and cost efficiency.

Elevation is a stronger predictor of morphological trait divergence than competition in a radiation of tropical lizards.

Adaptations for efficient performance are expected to shape animal morphology based on selection for microhabitat use and ecological forces. The presence of competitor species is predicted to cause niches to contract and enhance trait divergence. Therefore, increased species richness is expected to lead to greater trait divergence, and to result in reduced overlap and similarity between morphologies of sympatric species. We examined patterns of morphospace occupancy and partitioning in the skink fauna of New Guinea, the world's largest tropical island. Because skink species richness is largely decoupled from elevation in New Guinea, we could examine the effects of both factors (as proxies for competition and abiotic conditions), on morphospace occupancy and partitioning. We measured 1,860 specimens from 79 species of skinks throughout Papua New Guinea, and examined their morphospace occupancy in a spatial context. We calculated, for each assemblage within equal-area cells, the volume of morphospace occupied by all skinks, the mean volume occupied per species, and the mean distance and overlap between all species pairs. We then examined whether these metrics are related to species richness and elevation. Elevation is a stronger predictor of morphospace occupancy than species richness. As elevation increases, intraspecific variation decreases and morphologies become more similar to each other such that overall morphospace occupancy decreases. Highland skinks are, on average, smaller, thinner and shorter limbed than lowland species. We hypothesise that harsh climates in the New Guinea highland habitats impose strong selection on skinks to occupy specific areas of morphospace that facilitate efficient thermoregulation in suboptimal thermal conditions. We conclude that the effect of competition on trait divergence on a community and assemblage scale is eclipsed by abiotic selection pressures in these harsh environments.

Direct effects influence larval salamander size and density more than indirect effects.

Direct and indirect effects both influence population and community dynamics. The relative strengths of these pathways are often compared using experimental approaches, but their evaluation in situ has been less frequent. We examined how individual and aggregate impacts of direct and indirect effects of species densities, proxies for competition and predation pressure, and habitat variables influenced patterns of larval density and body size of ringed (Ambystoma annulatum) and spotted salamanders (A. maculatum). We surveyed > 150 ponds in Missouri, USA, from 2012 to 2014 to measure the density and body size of each focal species, the density of co-occurring pond food web members, and select habitat features. We used structural equation modeling to quantify the relative importance of direct and indirect pathways on both body size and larval density. Overall, both responses were explained through a combination of direct and indirect effects. However, the magnitudes of direct effects were often greater than indirect effects. Some of the direct and indirect relationships with larval salamander size and density were also consistent with results from experimental studies. Finally, total direct and indirect effects were often weaker due to habitat and density variables negating each other's impacts. Overall, our study shows that direct effects were equivalent to, or more important than, indirect effects. We also demonstrate that the effects stemming from individual relationships can sum to produce net patterns that are negligible in magnitude. Further work on direct and indirect effects with observational data are needed to examine their magnitudes in natural communities.

Relative influence of environmental, stand factors and functional traits on allocation of forest productivity during the restoration of subtropical forests in central China

Many studies have examined plant biomass allocation among leaf, stem and root organs in relation to environmental and ontogenetic factors. But the drivers for allocation of stand-level productivity across restoration stages, and the potential role of functional traits, are still poorly understood. Here we investigated 24 plots across four restoration stages in subtropical forests on Mt. Shennongjia, central China. We examined the relative effects of environment (slope, aspect and canopy openness), stand factors (forest height, total basal area, stand density and age), and community-weighted mean (CWM) of key functional traits (wood density and specific leaf area), on the allocation of forest productivity to stems, leaves and roots. The results showed that forest productivity, and the stem fraction of stand productivity, both increased during forest restoration; while leaf and root productivity fractions showed an overall decrease. A higher fraction of productivity was allocated to leaves and roots while lower fraction was allocated to stems towards harsher site condition. Stem fraction was positively related to stand age and forest height, whereas root fraction showed a converse pattern. None of the stem, leaf or root fraction was significantly correlated with the proxies of competition (stand density and total basal area). As for the effect of functional traits, stem productivity fraction was negatively related to the CWM of wood density, while leaf fraction was positively related, which can be explained by the optimal theory and growth strategy together. However, CWM of specific leaf area has no significant effect on productivity allocation. Multivariate analyses showed that topography (slope) and stand age were main drivers for the productivity allocation to woody organs (stem and root), and wood density was also important for stem productivity fraction. Meanwhile, leaf fraction is mainly affected by wood density and aspect. Our results suggest that, in addition to environmental and stand factors, functional traits (e.g. wood density) are also important in affecting the allocation of stand productivity. However, there are still many equivocal results about the influence of functional traits. Allocation of productivity among organs, and key functional traits (e.g. wood density and specific leaf area), are both indispensable parameters in ecosystem processes models. Further studies are needed to explore the mechanisms how functional traits and stand factors affect productivity allocation, to better predict forest carbon balance under future global change, and to better guide forest management to increase ecosystem services and carbon sink.

Directly quantifying multiple interacting influences on plant competition.

When plants compete what influences that interaction? To answer this we measured belowground competition directly, as the simultaneous capture of soil ammonium and nitrate by co-existing herbaceous perennials, Dactylis glomerata and Plantago lanceolata, under the influence of: species identity; N uptake and biomass of focal and neighbour plants; location (benign lowland versus harsher upland site); N availability (low or high N fertilizer); N ion, ammonium or nitrate production (mineralisation) rate, and competition type (intra- or interspecific), as direct effects or pairwise interactions in linear models. We also measured biomass as an indirect proxy for competition. Only three factors influenced both competitive N uptake and biomass production: focal species identity, N ion and the interaction between N ion and neighbour N uptake. Location had little effect on N uptake but a strong influence on biomass production. N uptake increased linearly with biomass only in isolated plants. Our results support the view that measuring resource capture or biomass production tells you different things about how competitors interact with one another and their environment, and that biomass is a longer-term integrative proxy for the outcomes of multiple separate interactions-such as competition for N-occurring between plants.

Common ownership and competition in product markets

We investigate the relation between common institutional ownership of the firms in an industry and product market competition. We find that common ownership is neither robustly positively related with industry profitability or output prices nor is it robustly negatively related with measures of nonprice competition, as would be expected if common ownership reduces competition. This conclusion holds regardless of industry classification choice, common ownership measure, profitability measure, nonprice competition proxy, or model specification. Our point estimates are close to zero with tight bounds, rejecting even modestly sized economic effects. We conclude that antitrust restrictions seeking to limit intra-industry common ownership are not currently warranted.

Office-Client Balance and Metro Area Audit Market Competition

SUMMARYWe propose a new audit supplier competition construct, the Office-Client Balance (OCB), which consists of the relative abundance of competing audit offices and audit clients in a metropolitan (metro) area. From this construct, we derive a metro level audit competition proxy reflecting surpluses or shortfalls of total metro audit office numbers relative to the national metro OCB norm: the OCB_TOT. Consistent with the predictions of Porter's Five Forces theory, we find that OCB_TOT is associated with lower fees, more auditor turnover, and more (less) office exits (entrances) in metro audit markets. These findings validate OCB_TOT as a proxy for audit market competition. Our results indicate that greater metro level competition among auditors (more positive OCB_TOT) is associated with higher audit quality, proxied by fewer financial statement misstatements. Several additional analyses suggest that OCB_TOT is useful in explaining clients' choices of local (versus remote) audit offices and Big 4 (versus non-Big 4) offices.Data Availability: Data used in this study are available from public sources.JEL Classifications: G18; L10; M42.

Can crown variables increase the generality of individual tree biomass equations?

Crown variables and height can improve biomass predictions and may help to quantify how tree biomass is influenced by inter-tree competition (stand density, species composition), climate, edaphic conditions, and age. Tree biomass is influenced by tree age, stand structural characteristics, and climatic and edaphic site factors. However, most allometric equations for predicting tree biomass do not quantify these effects and when these characteristics are included as variables, they typically only reflect the average or current conditions even though tree allometry is the result of past growing conditions as well. An alternative to using site and stand characteristics is to use tree variables that have been influenced by site and stand structure for the whole lifetime of the tree. The objective of this study was to compare stem diameter-only equations that predict above-ground biomass or foliage mass with equations that also contain a climatic variable (aridity index) and stand variables, such as age and basal area (as a proxy for competition), or equations containing another tree size variable, such as crown diameter, crown length and tree height. This was done using 348 trees from 24 sites and 10 Eucalyptus species in southern Australia. Stand basal area and age were significant in 2 of 23 final equations and the aridity index was not significant in any equations. Adding another tree size variable to the diameter-only equations reduced the bias and increased the precision in 6 of the final equations. This study shows that the addition of crown variables (or height) to diameter-only biomass equations can quantify some of the effects that site and stand structural characteristics have on biomass. Variables such as crown diameter and height could also be useful because they are easier to measure accurately using remote sensing methods than stem diameters and related stand structural characteristics, such as basal area.

How Does Competition Affect Innovation? Evidence from U.S. Antitrust Cases

This paper examines how market competition affects the intensity and breadth of innovation, using the formation and breakup of price fixing cartels to proxy for competition, or lack thereof. I assembled a unique dataset comprising 461 prosecuted cartel cases in the U.S. from 1975-2016, where I match 1,818 collusive firms to firm-level data on patenting and other measures of innovation. I then use a difference-in-difference methodology, matching colluding firms to various counterfactual firms. Empirical results show a negative causal relationship between competition and innovation in the cartel context. When collusion suppressed market competition, colluding firms increased R&D investment by 12%, patenting by 51%, and top-quality patents by 20%. Furthermore, at the same time, firms broadened their areas of innovation by increasing the number of patented technology fields by 33%. The main finding has a notable strategic implication – that firms shift toward innovation competition when price competition weakens. Further tests suggest that financial constraint (