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| LEADER |
01590nam a2200205Ia 4500 |
| 001 |
10.1093-rof-rfz007 |
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220511s2019 CNT 000 0 und d |
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|a 15723097 (ISSN)
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| 245 |
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|a Are US industries becoming more concentrated?
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| 260 |
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|b Oxford University Press
|c 2019
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| 856 |
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|z View Fulltext in Publisher
|u https://doi.org/10.1093/rof/rfz007
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|a Since the late 1990s, over 75% of US industries have experienced an increase in concentration levels. We find that firms in industries with the largest increases in product market concentration show higher profit margins and more profitable mergers and acquisitions deals. At the same time, we find no evidence for a significant increase in operational efficiency. Taken together, our results suggest that market power is becoming an important source of value. These findings are robust to the inclusion of (i) private firms; (ii) factors accounting for foreign competition; and (iii) the use of alternative measures of concentration. We also show that the higher profit margins associated with an increase in concentration are reflected in higher returns to shareholders. Overall, our results suggest that the US product markets have undergone a shift that has potentially weakened competition across the majority of industries. © The Author(s) 2019.
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|a Concentration levels
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|a Market power
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|a Mergers and acquisitions
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|a Product market competition
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| 700 |
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|a Grullon, G.
|e author
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|a Larkin, Y.
|e author
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|a Michaely, R.
|e author
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| 773 |
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|t Review of Finance
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