Horizontal and Vertical Firm Networks, Corporate Performance and Product Market Competition

Oliver Bischoff () and Achim Buchwald ()
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Oliver Bischoff: Monopolies Commission
Achim Buchwald: Federal University of Applied Administrative Sciences

Journal of Industry, Competition and Trade, 2018, vol. 18, issue 1, No 2, 25-45

Abstract: Abstract This paper sheds new light on the assessment of firm networks via multiple directorships in terms of corporate firm performance. Using a large sample of European listed firms in the period from 2003 to 2011 and system GMM we find a significant compensation effect on corporate firm performance for the initial negative effect of horizontal multiple directorships by product market competition. In markets with effective competition, horizontal multiple directorships turn out to be an efficient mechanism to increase firm performance and thus assure competitive advantages. By contrast, linkages between up- and downstream firms have no significant influence on financial performance, irrespective of the level of competition intensity.

Keywords: Horizontal and vertical firm networks; Multiple directorships; Corporate governance; Product market competition; Dynamic panel; C23; G32; G34; L14; L25; L40 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Horizontal and Vertical Firm Networks, Corporate Performance and Product Market Competition (2016)
Working Paper: Horizontal and Vertical Firm Networks, Corporate Performance and Product Market Competition (2015)
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DOI: 10.1007/s10842-017-0250-7

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