IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-09-00341.html
   My bibliography  Save this article

Industry Concentration and Cash Flow at Risk

Author

Listed:
  • Yen-Chen Chiu

    (Department of Finance, National Taichung Institute of Technology, Taichung, Taiwan)

Abstract

This paper explores the link between industry concentration, which is a feature of the product markets in which firms operate, and the risk of a firm's cash flows, offering the first empirical evidence of the risky cash-flow implications of industry market structure. Our analysis shows that on average highly concentrated industries have experienced lower volatility of cash flows while the volatility of cash flows for competitive industries is higher. Our findings are consistent with the view that innovation and distress risk, which is more pronounced in competitive industries, are prized sources of risk in the context of the cash-flow-at-risk.

Suggested Citation

  • Yen-Chen Chiu, 2010. "Industry Concentration and Cash Flow at Risk," Economics Bulletin, AccessEcon, vol. 30(1), pages 405-413.
    • Handle: RePEc:ebl:ecbull:eb-09-00341
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I1-P35.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Cash-flow-at-risk; Industry Concentration;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-09-00341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.