Corporate Financing and Product Market Competition: An Overview

Cestone, G. (1999). Corporate Financing and Product Market Competition: An Overview (Report No. CSEF Working Paper no. 18). CSEF.

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This paper offers an overview of the main interactions between corporate financing decisions and product market competition. Financial policy may affect the market game in several ways. It can make a firm more or less vulnerable to predation, commit the firm to a particular market strategy, or convey signals to the firm's competitors. Financial policy matters also in that the decision to resort to a common lender can facilitate collusion among competing firms. Finally, an appropriate design of financial claims can commit the lender not to provide potential entrants with funding or expertise.

Item Type: Monograph (Working Paper)
Additional Information: Copyright©2013 All Rigths reserved CSEF
Uncontrolled Keywords: Capital Structure, Product Markets
Divisions: Cass Business School > Faculty of Finance
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