Market share, firm innovation, and idiosyncratic volatility

Frederick Adjei () and Mavis Adjei ()
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Frederick Adjei: Southeast Missouri State University
Mavis Adjei: Southern Illinois University Carbondale

Journal of Economics and Finance, 2017, vol. 41, issue 3, No 9, 569-580

Abstract: Abstract In this study, we reexamine the link between a firm’s market share and its idiosyncratic volatility. Contrary to extant research, we find that market share is not a determinant of idiosyncratic volatility. Innovative firms continuously innovate resulting in an increase in market share. However, high market share firms may not necessarily increase investment in innovative ventures to maintain market share. Hence an increase in market share does not necessarily lead to an increase in a firm’s idiosyncratic risk.

Keywords: Market share; Firm innovation; Idiosyncratic volatility (search for similar items in EconPapers)
JEL-codes: G10 G14 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s12197-016-9371-9

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