How finance shapes product market rivalry
Firms’ financial and governance decisions have major effects on labour and product markets, what we like to think of as the real economy. This is not surprising: academic research has unveiled the many ways in which financial management and corporate governance shape a firm’s relationship with its competitors, suppliers, clients, and employees.
Giacinta Cestone will guide us through this area of research, drawing lessons from her work at the intersection between finance, labour economics and industrial organisation. She will discuss how firms’ financial decisions and ownership structures affect product market rivalry. She will argue that companies should be concerned about how their product market competitors combine debt and equity financing, what trade credit terms they offer to their customers, and whether they are owned by diversified corporate groups. The lesson for policy makers is that corporate finance and governance are key determinants of competition that cannot be overlooked.
Biography
Giacinta Cestone joined Bayes Business School in 2010 as a Lecturer in Finance and has been a Reader in Finance until 2023. She is currently the Director of the Finance PhD Programme. Before joining Bayes, Giacinta held research and teaching positions at Queen Mary, University of London, CSEF (Naples) and the Institute for Economic Analysis in Barcelona. She has a PhD in Economics from the University of Toulouse.
Giacinta is a member of the Economic Experts Panel of the UK Competition and Markets Authority and of the Economic Advisory Group on Competition Policy at the European Commission.
In her research, she has investigated the complex interactions between corporate finance/governance, labour markets and product markets. Her research has been published in prestigious economics and finance journals, including the Review of Economic Studies, the Journal of Financial Economics, the Journal of Finance. Over the years, she has taught corporate finance to MSc, MBA and PhD students, with a special focus on how financial management interacts with corporate strategy.
This event will be followed by a drinks reception.
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