IDEAS home Printed from https://ideas.repec.org/a/ucp/jnlbus/v78y2005i6p2465-2464.html
   My bibliography  Save this article

Firm Value and Geographic Competitive Advantage: Evidence from the U.S. Pharmaceutical Industry

Author

Listed:
  • Vigdis Boasson

    (Ithaca College)

  • Alan MacPherson

    (State University of New York at Buffalo)

  • Hyun-Han Shin

    (Yonsei University, Seoul, Korea)

Abstract

This paper examines the effects of geographic sources of competitive advantage on firm value among publicly traded pharmaceutical companies in the United States. A central argument is that firm value responds positively to geographic factors. We hypothesize that firm value is influenced by the degree of industry clustering, university and industrial R&D spending, the presence of related or supporting industries, and the proximity of competitors. The empirical results lend support to our hypotheses. Even after controlling for the firm value determinants used by Fama and French (1998), geographic variables explain a significant part of the cross-sectional variation in firm value.

Suggested Citation

  • Vigdis Boasson & Alan MacPherson & Hyun-Han Shin, 2005. "Firm Value and Geographic Competitive Advantage: Evidence from the U.S. Pharmaceutical Industry," The Journal of Business, University of Chicago Press, vol. 78(6), pages 2465-2495, November.
    • Handle: RePEc:ucp:jnlbus:v:78:y:2005:i:6:p:2465-2464
    DOI: 10.1086/497038
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/497038
    File Function: main text
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/497038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brache, Jose & Felzensztein, Christian, 2019. "Geographical co-location on Chilean SME's export performance," Journal of Business Research, Elsevier, vol. 105(C), pages 310-321.
    2. Fernhaber, Stephanie A. & Li, Dan, 2013. "International exposure through network relationships: Implications for new venture internationalization," Journal of Business Venturing, Elsevier, vol. 28(2), pages 316-334.
    3. Manuel A. Espitia Escuer & Lucia I. Garcia Cebrian & Antonio Munoz Porcar, 2011. "Las Caracteristicas De Las Empresas Como Factores Determinantes En Su Localizacion," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 4(3), pages 99-111.
    4. O. V. Kuznetsova & R. O. Bobrovsky, 2022. "Location of the Largest Pharmaceutical Companies in Russia: Contribution to Regional Divergence or Convergence?," Regional Research of Russia, Springer, vol. 12(2), pages 124-132, June.
    5. J. Knoben, 2009. "Localized inter-organizational linkages, agglomeration effects, and the innovative performance of firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 757-779, September.
    6. Lee, Chang-Yang, 2018. "Geographical clustering and firm growth: Differential growth performance among clustered firms," Research Policy, Elsevier, vol. 47(6), pages 1173-1184.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:78:y:2005:i:6:p:2465-2464. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.jstor.org/journal/jbusiness .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.