The Wealth Effect of New Product Introductions on Industry Rivals
We find that, on average, rivals of firms announcing new products experience a significantly negative wealth effect. We also show that rivals in technologically based industries experience the most significantly unfavorable effect. Rivals' share price response is more unfavorable when the wealth effect on the announcers is larger and when frequent announcers introduce new products. Smaller rivals and those with better investment opportunities also are more adversely affected. Further, highly leveraged rivals, especially those in concentrated industries, experience a greater wealth loss. However, we find that rivals' wealth effects are more favorable when the products introduced are very new.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:78:y:2005:i:3:p:969-996. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.