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How Do Capital Markets Influence Product Market Competition?

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  • Michael H. Riordan

Abstract

This article is the written version of the author's keynote presentation to the inaugural International Industrial Organization Conference held in Boston on April 4--5, 2003. It summarizes selectively a literature on the interaction between the capital and product markets at the nexus of industrial organization and corporate finance, and develops two key insights. First, capital market constraints on an individual firm are determined at the level of the industry and depend on product market competition. Second, capital markets constrain the product strategy of firms and thereby influence product market performance.

Suggested Citation

  • Michael H. Riordan, 2003. "How Do Capital Markets Influence Product Market Competition?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3_4), pages 179-191, December.
    • Handle: RePEc:kap:revind:v:23:y:2003:i:3_4:p:179-191
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    Cited by:

    1. Magali Pedro Costa & Cesaltina Pires, 2014. "Capital Structure, Product Market Competition and Default Risk," CEFAGE-UE Working Papers 2014_14, University of Evora, CEFAGE-UE (Portugal).
    2. Christopher Snyder, 2003. "Introduction to the 2003 International Industrial Organization Conference Special Issue," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3), pages 175-177, December.
    3. Hanying Qi, 2019. "A New Literature Review on Financialization," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 7(2), pages 40-50.

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