IDEAS home Printed from https://ideas.repec.org/a/oup/rfinst/v30y2017i8p2674-2718..html
   My bibliography  Save this article

Product Market Competition in a World of Cross-Ownership: Evidence from Institutional Blockholdings

Author

Listed:
  • Jie (Jack) He
  • Jiekun Huang

Abstract

We analyze the effects of institutional cross-ownership of same-industry firms on product market performance and behavior. Our results show that cross-held firms experience significantly higher market share growth than do non-cross-held firms. We establish causality by relying on a difference-in-differences approach based on the quasi-natural experiment of financial institution mergers. We also find evidence suggesting that institutional cross-ownership facilitates explicit forms of product market collaboration (such as within-industry joint ventures, strategic alliances, or within-industry acquisitions) and improves innovation productivity and operating profitability. Overall, our evidence indicates that cross-ownership by institutional blockholders offers strategic benefits by fostering product market coordination.Received November 12, 2015; editorial decision December 31, 2016 by Editor Itay Goldstein.

Suggested Citation

  • Jie (Jack) He & Jiekun Huang, 2017. "Product Market Competition in a World of Cross-Ownership: Evidence from Institutional Blockholdings," The Review of Financial Studies, Society for Financial Studies, vol. 30(8), pages 2674-2718.
    • Handle: RePEc:oup:rfinst:v:30:y:2017:i:8:p:2674-2718.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/rfs/hhx028
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    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:oup:rfinst:v:30:y:2017:i:8:p:2674-2718.. 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/sfsssea.html .

    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.