We investigate how product market competition jointly affects specific corporate investment and financing behavior. Given an expected cash flow shortfall, firms may reduce cash reserves, increase external finance, cut back dividends, and sell off assets and/or investments. The first three...

Using a tax-induced negative shock to expected cash flows in the tobacco industry as a natural experiment, I find significant positive returns to rivals who compete with non-tobacco segments in tobacco firms and a significant change in output behavior of those non-tobacco segments after the...

We study price competition between firms over public list or posted prices when a fraction of consumers (termed ‘bargainers') can subsequently receive discounts with some probability. Such stochastic discounts are a feature of markets in which some consumers bargain explicitly and of markets...