Industry concentration and stock return: Avidence from Turkey

Abstract

In manufacturing sector, firms are able to influence their stock returns by means of risky cash flows due to their operating decisions. These decisions are not only dependent on firm financial structures but also on their characteristics related to product markets. Competition level among firms which represent firm distinctive features is one of the important factor for the estimation of stock returns. Creative destruction hypothesis and structure, conduct and performance paradigm are channels in order to determine the relation between stock returns and competition. Therefore, this relation is subject for finance and also microeconomy.