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Financial returns and strategic interaction: The case of instant photography
Author(s) -
Bettis Richard A.,
Weeks David
Publication year - 1987
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250080605
Subject(s) - instant , competition (biology) , shareholder , capital asset pricing model , photography , finance , asset (computer security) , economics , business , competitive advantage , financial economics , industrial organization , microeconomics , marketing , computer science , management , corporate governance , ecology , physics , computer security , quantum mechanics , biology
The purpose of this paper is to examine the use of shareholder returns to study the impact of complex strategic interactions that involve a sequence of moves by competing firms. The paper seeks to begin to build a bridge between the capital asset pricing model of modern financial theory and competitive strategy. Competition in instant photography is used as an example. Results demonstrate how shareholder returns and changes in market risk (β) can be associated with both overall strategies and specific competitive moves.