A Close Connection between the Disciplines of Industrial Organization and Finance: A Worthy Objective or a Bridge Too Far?
10 Pages Posted: 7 Nov 2013
Date Written: November 2013
Periodically the question of whether there ought to be a substantially closer connection between the disciplines of industrial organization (IO) and finance has been a topic of conversation within the IO discipline. After documenting three such initiatives that ultimately failed to have lasting effects, this article argues that a goal of a close interweaving of IO and finance is a chimera – but that more modest interactions have been and continue to be possible.
Keywords: Industrial organization; finance;, capital asset pricing model (CAPM); Tobin’s Q;, event studies
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