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    Essays on product market competition : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Finance at Massey University, Palmerston North, New Zealand
    (Massey University, 2023) Zang, Suxiang
    Product market competition is a fundamental economic mechanism and a key topic in recent decades. In this thesis, we analyse competition measurement to improve the credibility of relevant analyses, and we study relation of firm market power with investor sentiment to fill the gap in current literature. Essay One and Essay Two investigate a typical measure of industry concentration, the Herfindahl-Hirschman index (HHI), which is widely used to gauge competition based on industrial organisation theories. To facilitate HHI application and improve its measuring accuracy, we review the existing HHI proxies and recommend two simple HHI measures. Our survey shows that the convenient but misleading Compustat HHI is most frequently employed by researchers, while Census HHI that contains the most complete market share information of US firms is less preferred mainly due to low publication frequency and narrow industry coverage. Other HHI proxies developed recently often require extra data with complicated computation and are only occasionally employed. Comparatively, the simple HHI measures we propose are strongly correlated with the comprehensive Census HHI and are available at high frequencies for wide industries. Further, compared with Compustat HHI, the simple HHI measures better approximate Census HHI in association with important firm characteristics, and lead to more similar results as Census HHI in empirical examinations. Essay Three explores the relation between market power and stock sensitivity to investor sentiment, on which previous studies basically keep silent. We show that firms with the weakest market power have the most susceptible returns to investor sentiment, and that return spreads between firms with high and low market power are significantly higher after optimistic sentiment than pessimistic sentiment. The return patterns across market power portfolios are more evident when sentiment is more extreme, and when sentiment later weakens than strengthens. Our baseline regressions usually show significantly positive relation between the high-minus-low market power portfolio returns and the preceding sentiment levels, which pulls through a set of robustness tests. Conclusively, our finding reveals a negative relation between market power and sentiment-driven misvaluation, consistent with the argument that market power insulates profits and reduces performance uncertainties.
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    Factors influencing bank deposits : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy (PhD) in Banking at Massey University, Palmerston North, New Zealand
    (Massey University, 2020) Srivastava, Nikhil
    This thesis comprises three essays that investigate the effects of human capital, financial markets, and the banking system development on bank deposits, deposit funding, retail, and time deposits proportions. The first two essays are country level studies, whereas the third is at bank level. The data related to first essay has been obtained from the World Bank and the World Health Organisation (WHO). For the second and third essays, bank level data is from Bankscope and macroeconomic variables data are from the World Bank. The first essay investigates the effects of human capital development on bank deposits, employing 2SLS method in a cross-country setup. Human capital development includes the development of the healthcare system and education level. I use two dependent variables: deposits to GDP ratio and value of total deposits. Results show a positive relationship between human capital development and bank deposits. However, the impact of healthcare system on total deposits is higher than the bank deposits to GDP ratio, suggesting that an improvement in the healthcare system increases households’ income and a proportion of that increased income goes into the banking system. The impact of education is higher in high financially included countries than in less financially included countries. The second essay examines the effects of financial markets development on bank deposits, using instrumental variables methods. Empirical results suggest that investors in developed and developing economies use financial markets differently. In highly financially integrated economies, the financial markets and banking system complement each other, whereas in fragmented markets they compete. The third essay explores the effects of competition on bank deposit funding and composition. Interest cost has been used to measure deposit competition and the Herfindahl- Hirschman Index (HHI3) at deposits and loans levels to measure market structure. The results show that increased deposit competition encourages banks to increase the proportion of less costly funds, causing a reduction in deposit funding. In contrast, high interest rates attract retail depositors, especially for time deposits, thereby increasing the proportion of retail deposits. However, this finding varies according to the financial development level of the countries. Market concentration shows negative effects on bank deposit funding and composition.
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    Competition and contestability in trans-Tasman liner shipping industry : a thesis presented in fulfilment of the requirements for the degree of Masters of Applied Economics at Massey University
    (Massey University, 1997) Li, Gang Richard
    This study examines competition and contestability in trans-Tasman liner shipping industry for the period of waterfront deregulation. Contestability, often known as a benchmark in markets, is one of the most controversial issues of industrial organization theory. In this study, contestability in trans-Tasman liner shipping industry is analyzed, since this industry had been highly regulated and protected by trade union policy and practice until the recent waterfront reforms. Using a normative analysis, the study finds that parts of the trans-Tasman liner trade exhibit characteristics of contestability, such as frequent entry/exit, an absence of sunk costs, and pricing behaviour. In contrast to the predictions of contestability theory, actual competition, rather than potential competition has been found to have a substantial effect on market performance. Hence, the study further employs a "Conjectural Variations" model to examine firms' strategic behaviours. The simulation results indicate that since post-deregulation, a period of intensive competition has occurred. The study suggests that contestability theory may not be robust with small deviations from the assumptions. Instead, contestability theory supplements industrial organization theory with a new device specializing in performance implications of competition. In practice, the study concludes that deregulation has brought very substantial benefits to the shippers and to the national economy. As a result, a new wave of restructuring in the liner shipping industry and in the whole ports/shipping network is just beginning.
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    An analysis of the practicality of using the public benefit test in business acquisitions and restrictive trade practices : a thesis presented in partial fulfilment of the requirements of the degree of Master of Applied Economics in Accounting at Massey University
    (Massey University, 1998) Leask, Andrea Janelle
    The objective of this research was to examine the efficacy of the 'public benefit test' to authorise anti-competitive practices and acquisitions in New Zealand, as applied by the Commerce Commission, under the Commerce Act 1986. In particular, the study established whether, and to what extent, companies granted authorisation had successfully achieved the benefits claimed, in comparison to what might have been achieved without authorisation - the counterfactual. No such study has been performed in New Zealand, despite the potentially significant cost to society if anti-competitive acquisitions and trade practices are habitually unable to achieve benefits claimed. The approach adopted was to compare expectations of benefits held by the Commission and the applicants at the time of merger, with actual achievements. Actual results were also compared with the counterfactual. The case study approach was embraced to accomplish this as it permits an in-depth examination of the issues related to each determination. Questionnaires completed by company representatives of the firms granted authorisation were the primary source of information. Interviews were also held with company representatives to clarify outstanding issues. Nine authorisations were identified which met a set of criteria developed by the researcher, involving four industries: meat processing, dairy processing, gas, and telecommunications. One authorisation studied, involving Telecom and the cellphone services market, surpassed expectations of benefits resulting from authorisation, while another, involving a joint venture gas retailing operation in Hamilton, overestimated gains from merger, and thus, benefits have not been achieved. All other authorisations studied, fell somewhere in between these extremes. The major conclusion of this study appears to be that the Commerce Commission's ability to predict the size, magnitude, and probability of benefits being realised, is poor. This result is attributable to the multitude of factors affecting firms' operations, rather than an oversight by the Commission. In each of the four industries there have been major changes in market conditions, mostly attributable to deregulation, and ensuing competition. The poor predictability of the public benefit test brings into question its usefulness as a major competition policy tool. The major weakness of the public benefit test is its inability to provide an incentive for companies granted authorisation to ensure efficiency gains and other benefits are realised.
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    Small shop survival : the dairy-grocery as a case in point : a thesis submitted to the Department of Sociology, Massey University in partial fulfilment of the requirements for the degree of Master of Arts
    (Massey University, 1976) Maharey, Steve
    The study of dairy-grocers presented here goes some way toward filling the gap in social science knowledge of small shops in particular and small businesses in general. The aims of the study were: 1) to outline the broad environmental forces which have, in recent years, provided an unfavourable background for small business operation; 2) to give an account of the experiences of small shopkeepers in the context of their work; and 3) to examine how the experiences in question could best be collated as a theory which might explain the position of small shops and small shopkeepers in society. It was concluded, from the case study of dairy-grocers, that small shops and their owners are becoming structurally marginal. By structurally marginal is meant /....the condition of persons for whom institutionalised roles are not readily available, and who, as a consequence, suffer from a deficiency of social worth (Wittermans and Kraus, 1974:351). In view of the conclusions reached in the study, it is argued that current attempts to provide aid for the small shop will be unsuccessful in many instances unless small shops can be reintegrated into society as an important component of the retailing heirarchy. The research was qualitative in nature and took the form of a case study. The case study approach was adopted to allow an in depth analysis of the problems at hand. The major research technique used was that of intensive interviewing. The research was perceived of as exploratory and was therefore not guided by formal hypotheses. It is hoped that the great deal of descriptive data that was generated in the search for a theoretical explanation of the small shopkeeper in society, will be of use to researchers from the sociological areas of work, occupations, economic activity and the family.
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    Collaborating with competitors : value through coopetition in the New Zealand forest industry : a thesis presented in partial fulfilment of the requirements for the degree of Master of Supply Chain Management at Massey University, Manawatu, New Zealand
    (Massey University, 2016) Christians, Virginia Anne
    The purpose of this research is to investigate the scale of possibility for coopetition to be applied to the logistics activities in the export log supply chain in New Zealand. The research ascertains there are financial benefits of approximately $200million to the industry from cooperating in port logistics and shipping activities while continuing to compete in other sectors of the chain. The research tests to see if the existing theory on barriers and facilitators applies in this case study. Two research methods were used: 1. Qualitative interviews with exporters to probe for specific factors that support or hinder coopetition adaptation. 2. Quantitative research looking at financial implications, involving data collection from industry, building a simulation model, and simulating four degrees of coopetition adoption. The research identifies that small levels of cooperation between exporters can produce the most cost reduction benefits, with decreasing returns to scale through further collaboration attempts. As well as providing overall cost reductions the research indicates that there is a significant reduction in cost volatility by collaboration in shipping and logistics. While exporters used various terminology the themes that emerged, through semi-formal interviews, the barriers and enablers that were identified in this context relate closely to those models of other authors. The alignment of the physical world in time and space, the connection between strategic business models and relevant levels of autonomy and risk and the alignment of values, history and ability to communicate with relationship and their cost were all found to be significant factors that could both enable or disable cooperation between competitors in this case. Levels of trust and communication were found to be generally low in the log export industry the input of an independent third party may assist in supporting cooperation. The research concludes that there is potential for at least small and medium sized players in the industry to adopt some level of coopetition to reduce costs in the supply chain. However, the findings indicated that there are significant invisible costs associated with coopetition outside of the operational costs. The full cost of building and maintaining relationships required for it to persist still needs to be investigated further. These factors should be considered when analysing the savings as they may easily erode any gains made through coopetition.
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    The relationship between competitive intelligence and company success : a thesis presented in partial fulfilment of the requirements for the degree of Masters of Business Studies in Marketing at Massey University
    (Massey University, 1999) Fourie, Wilna Amoritha
    The past few years have seen a growing interest in competitive intelligence amongst academics and practitioners. This growth has been affected by a high degree of scepticism regarding the ability of competitive intelligence to effectively support business performance. The objectives of this study was to determine whether a relationship exists between competitive intelligence activities and company performance in a sample of New Zealand companies; to determine the level of competitive intelligence activities undertaken in this sample; and to determine the impact of the results on marketing strategy in general. To achieve this a mail survey was conducted and results based on a sample of 125 strategic business unit managers from various sized manufacturing, importing and distributing companies, in four respective industries of the Chemical industry sector. A composite competitive intelligence score was developed that included the following elements of the competitive intelligence cycle, namely: gathering activities, focus of intelligence, analysing activities, dissemination channels, use of intelligence, top management involvement and counter intelligence. Performance measures were self reported measures of growth over a three-year period (1994-1997). Although the results revealed a significant positive correlation between the composite competitive intelligence score and market share growth, it was a weak relationship with only three percent of the variance in market share explained by the composite competitive intelligence score (assuming this was the direction of causation). The competitive intelligence approach in the Chemical industry sector was found to be an ad hoc approach, characterised by informality and uncoordinated actions. Strategic business unit managers indicated that, even though using a predominantly informal approach, competitive intelligence activities: ▪ Improved their understanding of the dynamics of the market place. ▪ Improved implementation of new products or projects. ▪ Led to concrete actions. ▪ Helped shape policies. Although above mentioned benefits did not directly explain the variance in market share and only provide weak empirical support for an investment in competitive intelligence, it could indirectly play a significant role in the formulation of marketing strategies and ultimately in the creation and maintaining of a competitive advantage for a company.
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    Free trade or fair trade? How changes in the current international trade system could act as a development tool for third world countries : the Brazilian case : a thesis presented in fulfilment of the requirements for the degree of Master of Philosophy in Development Studies at Massey University
    (Massey University, 2002) Couto, Rossana Gabriely de Oliveira
    This study analyses and discusses the impacts of fair trade on cooperatives in Brazil. It also addresses the debate on free trade, showing its weaknesses and strengths; and it acknowledges the importance of governments' macropolicies in promoting development though trade. This study supports the view that international trade, as practised today, is detrimental to the economies of Third World countries, and it suggests actions to overcome negative impacts of international trade. One of these suggestions is alternative trade. However, this study argues that alternative trade, although an efficient tool in promoting the interests of small farmers, poor communities, and unskilled workers, should not be substituted for mainstream trade. Instead, alternative trade should act as a complement and promote the interests of those who have been losing with trade liberalisation policies. In examining one of the alternatives to free trade (the fair trade movement) research was conducted in Brazil in 2001. The evidence from research shows that although fair trade is found in its initial stages in Brazil, the impact has been beneficial to those cooperatives involved with it. The research also found differences between rural and urban participants. Groups in a rural context shared same experiences and types of products (agriculture), while groups in an urban context shared different experiences and were involved in other types of products (manufactures). Although all groups shared some similar difficulties, rural groups were more disadvantaged in terms of the distance, lack of infrastructure, communication problems, and lack of access to services. This study concludes that although the fair trade movement is still in its initial stages in Brazil and has had minor macroeconomic impacts on the Brazilian economy, it should be encouraged since it creates opportunities for marginalised groups to sell their production and reach a minimum standard of living. The study also argues that both alternative and mainstream trading system have their strengths and weaknesses, and that the ideas behind alternative trade should be incorporated into the mainstream trading system in order to make it fairer to all participants.
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    Organisational learning, competitive strategy and export performance : a thesis presented in partial fulfilment of the requirements for a degree of Master of Management in Marketing at Massey University, Auckland, New Zealand
    (Massey University, 2012) Chen, Kai
    With the rise of global competition, organisations must acquire new knowledge and enhance their capabilities in response to fast changing market requirements. In international markets, it is vital for organisations to gather knowledge from both internal and external sources; however, few existing studies explore this topic in detail. This study employs organisational learning theory and competitive strategy theory to formulate a new organisational learning-competitive strategy-performance theoretical model concerning firms operating in the export sector. This research explores the mediating role of competitive strategies in the relation between organisational learning and export performance. This thesis also explores the effect of organisational learning on competitive strategies (low cost, differentiation and innovation) and performance, as well as the impact of competitive strategies on performance. The model was tested using the experience of 105 NZ exporting firms operating in a variety of host markets. The structural equation modelling method was employed as a key statistical analysis method for exploring the organisational learning-competitive strategy-performance path model. The empirical results indicate that export performance is significantly affected by low cost and differentiation competitive strategies, but that organisational learning factors (explorative and exploitative) have no direct effect on export performance. It is also confirmed that organisational learning factors (explorative and exploitative) can act as antecedents of competitive strategy factors (innovation, low cost and differentiation), as they have a significant impact on the choice of competitive strategy. The results confirm the mediation role of competitive strategy in the relation between organisational learning and performance. The outcomes of this thesis provide a new direction for future exporting research regarding organisational learning, competitive strategy and performance.
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    Resource partitioning between two competitive species, the hihi (Notiomystis cincta) and bellbird (Anthornis melanura), during the non-breeding season on Tiritiri Matangi Island : a thesis presented in partial fulfilment of the requirements for the degree of Master of Science in Conservation Biology at Massey University, Albany, New Zealand
    (Massey University, 2012) Roper, Michelle
    Understanding the level of competition and resource partitioning between New Zealand’s ecological honeyeaters is important for hihi (Notiomystis cincta) conservation management. Hihi management on Tiritiri Matangi Island has been thought to be hindered by competition with bellbirds (Anthornis melanura), particularly at the supplementary sugar water feeders. With some inconsistent results in differences between their foraging ecology at different locations and seasons, I collected data on the foraging ecology of both hihi and bellbirds on Tiritiri Matangi Island to compare with previous studies at other locations. Nectar was the main constituent of both species diet with fruit only being consumed in the autumn-winter months for both species. The main difference between the species was that hihi consumed more fruit than bellbirds and bellbirds consumed honeydew. Bellbirds foraged more in the higher vegetation layers and on higher nectar value flowers than hihi which corresponded with previous studies. This suggested that resource partitioning is likely to be in the form of bellbirds defending the best resources of higher nectar value in the higher vegetation layers with interference competition and hihi obtain resources with exploitation competition by utilising flowers which are often smaller, less abundant or produce less nectar in the lower vegetation layers. Male bellbirds and hihi were the most frequent visitors to the supplementary feeders. With few interspecific interactions it suggests that male bellbirds are unable to defend the feeders due to the feeders being overwhelmed with hihi and also showing how dependent hihi are on supplementary feeding. Female bellbirds were the least frequent visitors suggesting that intraspecific competition is greater at the feeders but only for bellbirds as there was little evidence of high competition between the hihi sexes. There may be some resource partitioning between habitat types as hihi were consistently found at higher densities in the mature forest habitat likely due to their dependence on the feeders and artificial nest boxes, whereas bellbird densities changed with resource availability and breeding season territoriality. The densities of both species were affected by the presence of feeders and nectar availability with positive correlation between the species in the non-breeding season, suggesting that hihi habitat preference was not affected by competitive exclusion from bellbirds. The removal of 100 bellbirds for a translocation had no evident impact on hihi and bellbird densities at capture sites.