We examine the importance of industry to firm-level financial and real decisions. We find that
in addition to standard industry fixed effects, financial structure also depends on a firm's …

This paper shows that large cash reserves lead to systematic future market share gains at
the expense of industry rivals. Using shifts in import tariffs to identify exogenous …

Prior work suggests that if a firm shares a larger proportion of its growth opportunities with
rivals, an inability to fully invest in these opportunities leads to predatory behavior on the part …

Basel Committee recommends banks maintain a capital buffer for operational risk exposure
based on business volumes, assuming aggressive actions for quicker business growth …

This paper provides firm-and industry-level evidence of the effects of capital structure on
product market outcomes for a large cross-section of industries over a number of years. The …

This article shows how both technological and competitive risks affect the timing of private
and initial public offerings in an emerging industry. Early private financing occurs in …

The nature of product market competition and its influence on firms have a long history in
economics. Competition was already discussed in 1776 by Adam Smith in the Wealth of …

This paper provides a competitive equilibrium model of capital structure and industry
dynamics. In the model, firms make financing, investment, entry, and exit decisions subject to …

This paper develops models to make production and financing decisions simultaneously in
the presence of demand uncertainty and market imperfections. While the Modigliani and …

This paper is a review of the central theoretical literature. The most important arguments for
what could determine capital structure is the pecking order theory and the static trade off …