Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 11, 2017 erstellt
Beschreibung:
Numerous papers have shown that developing economies are more volatile. This paper shows despite greater aggregate and industry stability, performance and size of individual firms in developed countries are more volatile. In developing countries, market imperfections insulate incumbent firms from competition. Consistent with this, firms in developing countries have higher profit, market concentration, and survival rate. Cross-country differences in operating risk and competition intensity are greater in external finance dependent industries where we expect higher impacts of capital market imperfections. We show that the inverse relation between aggregate and firm-level volatilities has important implications on international studies of cash holding