Corporate Financing and Product Market Competition: An Overview

Giacinta Cestone ()

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: This paper offers an overview of the main interactions between corporate financing decisions and product market competition. Financial policy may affect the market game in several ways. It can make a firm more or less vulnerable to predation, commit the firm to a particular market strategy, or convey signals to the firm's competitors. Financial policy matters also in that the decision to resort to a common lender can facilitate collusion among competing firms. Finally, an appropriate design of financial claims can commit the lender not to provide potential entrants with funding or expertise.

Keywords: Capital Structure; Product Markets (search for similar items in EconPapers)
JEL-codes: G30 L13 (search for similar items in EconPapers)
Date: 1999-04-01
New Economics Papers: this item is included in nep-cfn, nep-fin, nep-fmk and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published in Giornale degli Economisti e Annali di Economia, 1999, vol. 58, pages 269-300

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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:18

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