Endemic volatility of firms and establishments: are real options effects important?

Abstract: "Consider the intertemporal volatility of the number of firms and establishments within an industry over a relatively long span of time. Data from the U.S. manufacturing sector shows that this degree of endemic volatility varies widely across industries. Examining the determinants of this volatility is important in its own right as it reflects on the underlying forces governing entry and exit. In addition, data shows that the volatility of firms and establishments is significantly correlated with the volatility of the number of production and nonproduction workers employed in an industry. The primary focus of this paper is to evaluate the role played by the real options channel which suggests that sunk costs and uncertainty may be important determinants of the degree of volatility of the number of firms. We also control for other factors related to advertising intensity, industry growth and technological change. An advantage of the manufacturing industry dataset we use in this stud

Object Details

• Alternative title: Endemische Volatilität von Unternehmen und die Bedeutung von 'real option effects'
• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource, 28,8 S.
• Language: Englisch
• Notes: Veröffentlichungsversion

References and Relationships

• Bibliographic citation: Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und politische Ökonomie, Abteilung Wettbewerbsfähigkeit und industrieller Wandel ; Bd. 2003-13

Classification and Topics

• Classification: Wirtschaft
• Keyword: Markteintritt ; Industrieökonomik ; Volatilität ; Sunk Costs ; Risiko ; Schätzung ; Industrie ; USA ; Marktaustritt ; Realoptionsansatz ; Markteintrittsstrategie ; Marktzugang ; Industrieökonomie ; Volatilität ; Versunkene Kosten ; Risiko ; Schätzung ; Großindustrie ; Industrie ; Verarbeitende Industrie ; Verarbeitendes Gewerbe ; Mechatronische Industrie ; Marktausstieg ; Realoption ; USA

Contributors, Places and Time

• Event: Veröffentlichung
• (where): Berlin
• (when): 2003
• Creator: Ghosal, Vivek
• Contributor: Wissenschaftszentrum Berlin für Sozialforschung gGmbH

Further information

• URN: urn:nbn:de:0168-ssoar-111839
• Rights: Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Last update: 25.03.2025, 1:42 PM CET