Firms’ camouflage: How do firms deter potential rivals?

• Main Authors: LI, Xuan, WAN, William P., YIU, Daphne W., DENG, Chaowen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Business Administration, Management, and Operations; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7642
• Institution: Singapore Management University

This study presents evidence that firms can employ accounting techniques as a camouflage to deter market entry. We theorize that incumbent firms have the incentives to use accounting techniques to influence how potential rivals assess and evaluate the profitability of the market space of the incumbe...