models with imperfect competition. We then identify conditions under which trade opening, by changing the distribution of …

This paper studies how expected returns interact with product market competition. The model predicts that (i …) competition erodes markups, such that firms are more exposed to systematic risk; (ii) the threat of entry by new firms lowers … overall negative relation between returns and competition. We also consider a sample selection correction for publicly listed …

This article provides evidence on the relation among financial constraints, competition, and the cyclicality of markups … competition. The evidence also suggests that these two elements complement each other: the procyclicality of markups in firms … facing both high competition and high liquidity constraints is higher than that explained by each determinant independently …