Competition Under Financial Distress
基于资本市场不完美，模型显示财务困境企业通过激进定价重塑资产结构，将低价作为内部融资来源，并连接了定价与库存行为。
This paper presents a link between product market competition and the financial situation--in particular asset composition--of firms, based on capital market imperfections. Consistent with the popular view, the model shows that firms under financial distress use aggressive pricing to generate cash. Firms resort to aggressive pricing in order to reshape their asset composition between nonliquid and liquid assets when new information renders their current composition nonoptimal. In contrast to the vast literature on inventories that has given little attention to pricing, the model links pricing and inventory behavior. Low pricing is used as a source of internal funding. Copyright 1996 by Blackwell Publishing Ltd.