Show simple item record

dc.contributor.authorAmountzias, Chrysovalantis
dc.date.accessioned2020-07-26T00:25:58Z
dc.date.available2020-07-26T00:25:58Z
dc.date.issued2020-07-19
dc.identifier.citationAmountzias , C 2020 , ' Markup cyclicality, competition and liquidity constraints: Evidence from a panel VAR analysis ' , International Journal of Finance and Economics (IJFE) . https://doi.org/10.1002/ijfe.1982
dc.identifier.issn1076-9307
dc.identifier.otherORCID: /0000-0002-7013-7032/work/77850263
dc.identifier.urihttp://hdl.handle.net/2299/23000
dc.description© 2020 The Author. This is an open access article under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
dc.description.abstractThe main scope of this study is to investigate the effects of competition and liquidity constraints on the cyclical behaviour of the markup ratio. In particular, 79 2-digit NACE Rev.2 sectors across the UK manufacturing and services industry over 2008-2017 are taken into account in order to observe markup cyclicality and whether pricing decisions are significantly influenced by the degree of competition and liquidity restrictions. A panel VAR framework is used to take into account the presence of cross-section dependence and heterogeneity amongst the constituent regressors of the model. The empirical results provide the following significant insights: (i) the markup ratio across the UK sectors follows a countercyclical pattern, (ii) concentrated sectors tend to charge countercyclical price-cost margins as they attempt to increase their market share in normal periods, and (iii) sectors with liquidity constrained firms charge countercyclical markups in order to substitute lack of funding with additional revenue. Complementary findings also suggest that more profitable firms charge procyclical markup ratios, thus validating the predatory pricing strategy in more concentrated sectors.en
dc.format.extent37
dc.format.extent1498478
dc.language.isoeng
dc.relation.ispartofInternational Journal of Finance and Economics (IJFE)
dc.subjectMarkup ratio
dc.subjectUK
dc.subjectManufacturing industry
dc.subjectServices Industry
dc.subjectConcentration
dc.subjectLiquidity constraints
dc.subjectEconomics, Econometrics and Finance(all)
dc.titleMarkup cyclicality, competition and liquidity constraints: Evidence from a panel VAR analysisen
dc.contributor.institutionOrganisation, Markets and Policy Research Group
dc.contributor.institutionHertfordshire Business School
dc.description.statusPeer reviewed
rioxxterms.versionofrecord10.1002/ijfe.1982
rioxxterms.typeJournal Article/Review
herts.preservation.rarelyaccessedtrue


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record