Competition and Operating Volatilities around the World
研究发现，尽管发展中国家宏观经济和行业波动更大，但发达国家单个企业的业绩和规模波动反而更高，原因是发展中国家市场不完善保护了在位企业免受竞争。
Numerous papers have shown that developing economies are more volatile. We show that, despite greater aggregate and industry stability, performance and size of individual firms in developed countries are more volatile. In developing countries, market imperfections insulate incumbent firms from competition. Consistent with this, firms in developing countries have higher profit, higher market concentration, and less capital raising. Cross-country differences in operating risk and competition intensity are greater in industries that are dependent on external finance, where we expect higher impacts of capital-market imperfections. We show the inverse relation between aggregate and firm-level volatilities has important implications for international studies of cash holding.