The impact of the degree of competition in IT industry on operating performance during financial crisis

Konferenzbeitrag

This study examines whether competition improves corporate performance in Korean economy. Market competition promotes managerial efforts for cost reduction and innovation, while market concentration enables managers to enjoy a "quiet life". The effect of competition can be substituted, to some extent, by that of financial distress. Financial constraint also puts managers in more efforts for higher efficiency of firm. Our analysis of the 2001-2009 panel data of 1,800 Korean firms supports the hypothesis of positive relationship between competition and performance. The negative effect of financial distress is also more evident in highly concentrated markets such as IT industry.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: 8th Asia-Pacific Regional Conference of the International Telecommunications Society (ITS): "Convergence in the Digital Age", Taipei, Taiwan, 26th-28th June, 2011

Classification and Topics

• Classification: Wirtschaft
• Subject: corporate governance ; market competition ; productivity ; financial crisis ; information technology

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lee, Sangho ; Nam, Changi ; Lee, Hongkyu
• Event: Veröffentlichung
• (who): International Telecommunications Society (ITS)
• (where): Calgary
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/92897
• Last update: 10.03.2025, 11:42 AM CET