Anti-Collusion Enforcements:Justice for Consumers and Equity for Firms

Dasgupta, Sudipto and Zaldokas, Alminas (2019) Anti-Collusion Enforcements:Justice for Consumers and Equity for Firms. Review of Financial Studies, 32 (7). 2587–2624. ISSN 0893-9454

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We consider the case of changing competition that comes from stronger antitrust enforcement around the world to show that, as the equilibrium switches from collusion to oligopolistic competition, firms step up investment and increase equity issuance. As a result, debt ratios fall. These results imply the importance of financial flexibility in surviving competitive threats. Our identification relies on a difference-in-differences estimation based on the staggered passage of leniency programs in 63 countries around the world from 1990 to 2012.

Item Type: Journal Article
Journal or Publication Title: Review of Financial Studies
Additional Information: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in British Journal for the Philosophy of Science following peer review. The definitive publisher-authenticated version Sudipto Dasgupta, Alminas Žaldokas, Anticollusion Enforcement: Justice for Consumers and Equity for Firms, The Review of Financial Studies, Volume 32, Issue 7, July 2019 is available online at:
Uncontrolled Keywords: /dk/atira/pure/subjectarea/asjc/1400/1402
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 127999
Deposited By: ep_importer_pure
Deposited On: 06 Nov 2018 13:24
Refereed?: Yes
Published?: Published
Last Modified: 13 Feb 2020 03:54

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