International Oligopoly and Stock Market Linkages: The Case of Global Airlines

This paper investigates the effect of oligopolistic rivalry on spillovers in financial reporting. Using an event study methodology and focusing on global airlines, the authors find that firms experience discernable abnormal stock price reactions at the announcement of unexpected earnings by rival airlines. The extent of the price reactions is related to the extent of rivalry between the announcing and non-announcing firms, among other factors. The empirical evidence, which is inconsistent with the contestable markets hypothesis, confirms an association between the stock market performance of players in a global industry and the extent of inter-firm rivalry in the product market.

• Record URL:
  • http://www.sciencedirect.com/science/article/B6VHF-4P7FHXD-1/1/8b661eaf4463841c8326ecff030e632d
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier
• Authors:
  • Gong, Stephen X H
  • Firth, Michael
  • Cullinane, Kevin
• Publication Date: 2008-7

Language

• English

Media Info

• Media Type: Print
• Features: Appendices; References; Tables;
• Pagination: pp 621-636
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 44
  • Issue Number: 4
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Airlines; Competition; Earnings; International; Markets; Stocks
• Uncontrolled Terms: Financial markets; Information transfer; Oligopoly
• Subject Areas: Aviation; Economics;

Filing Info

• Accession Number: 01099586
• Record Type: Publication
• Files: TRIS
• Created Date: May 21 2008 7:09AM