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The Rise of Star Firms [electronic resource] : Intangible Capital and Competition / Ayyagari, Meghana.

Author/Creator:
Ayyagari, Meghana.
Publication:
Washington, D.C. : The World Bank, 2019.
Format/Description:
Government document
Book
1 online resource (63 p.)
Series:
Policy research working papers
World Bank e-Library
Status/Location:
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Other Title:
World Bank working papers.
Local subjects:
Capital Investment. (search)
Competitiveness. (search)
Firm Productivity. (search)
Market Power. (search)
Private Sector Development. (search)
Private Sector Economics. (search)
Skilled Labor. (search)
Summary:
There is a divergence in the returns of top-performing firms and the rest of the economy, especially in industries that rely on a skilled labor force, raising concerns about their market power. This paper shows that the divergence is explained by the mismeasurement of intangible capital. Compared with other firms, star firms produce more per dollar of invested capital, have higher growth, innovation, and productivity and are not differentially affected by exogenous competitive shocks. Their pricing power supports their high intangible capital investment. Some exceptional firms may pose concerns due to their potential to foreclose competition in the future.
Contributor:
Ayyagari, Meghana.
Demirguc-Kunt, Asli.
Maksimovic, Vojislav.
Other format:
Print Version: Ayyagari, Meghana. The Rise of Star Firms: Intangible Capital and Competition.
Publisher Number:
10.1596/1813-9450-8832
Access Restriction:
Restricted for use by site license.