Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

COST OF CAPITAL AND MARKET POWER - THE EFFECT OF SIZE DISPERSION AND ENTRY BARRIERS ON MARKET EQUILIBRIUM

Tools
- Tools
+ Tools

UNSPECIFIED (1995) COST OF CAPITAL AND MARKET POWER - THE EFFECT OF SIZE DISPERSION AND ENTRY BARRIERS ON MARKET EQUILIBRIUM. SMALL BUSINESS ECONOMICS, 7 (3). pp. 205-212.

Research output not available from this repository, contact author.

Request Changes to record.

Abstract

A market power explanation for the observed empirical fact that large firms in a given industry pay less for their capital than small is developed. Larger firms in an industry are shown to pay less for their capital than small because they have more control over the market and the riskiness of their divided stream is correspondingly smaller. More firms in an industry with a given size dispersion raises the cost of capital to the incumbents, but proportionately more to smaller firms. However, the most significant result is that a greater dispersion of sizes will reduce the riskiness of the dividend stream of the larger firm and increase the riskiness of the smaller firm, causing an increase in the dispersion of capital costs. Hence product market power enhances capital cost efficiencies.

Item Type: Journal Article
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Journal or Publication Title: SMALL BUSINESS ECONOMICS
Publisher: KLUWER ACADEMIC PUBL
ISSN: 0921-898X
Official Date: June 1995
Dates:
DateEvent
June 1995UNSPECIFIED
Volume: 7
Number: 3
Number of Pages: 8
Page Range: pp. 205-212
Publication Status: Published

Data sourced from Thomson Reuters' Web of Knowledge

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item
twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us