AbstractThis paper investigates the effect of oligopolistic rivalry on spillovers in financial reporting. Using an event study methodology and focusing on global airlines, we find that firms experience discernable abnormal stock price reactions at the announcement of unexpected earnings by rival airlines. The extent of the price reactions is related to the extent of rivalry between the announcing and non-announcing firms, among other factors. Our empirical evidence, which is inconsistent with the contestable markets hypothesis, confirms an association between the stock market performance of players in a global industry and the extent of inter-firm rivalry in the product market.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    International oligopoly and stock market linkages: The case of global airlines


    Contributors:


    Publication date :

    2007-01-01


    Size :

    16 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





    International oligopoly and stock market linkages: The case of global airlines

    Gong, S. X. / Firth, M. / Cullinane, K. et al. | British Library Conference Proceedings | 2008



    Port privatization in an international oligopoly

    Matsushima, Noriaki | Online Contents | 2014


    Global Alliances of Airlines: Lufthansa German Airlines-United Airlines vs. British Airways-American Airlines

    Soon Hee Hwang / Transportation Research Forum | British Library Conference Proceedings | 1997