Rakestraw, Joseph Raymond2016-09-232016-09-232015-04-01vt_gsexam:4738http://hdl.handle.net/10919/73029Economic theory and empirical research suggests product market competition can result in both positive and negative capital market effects. Specifically, research suggests competition reduces agency costs, but also reduces profitability. I examine the relation between product market competition and firm value in an international setting, focusing on how the relation varies with firm- and country-specific characteristics. I document lower values for firms in more competitive industries. However, the negative relation between competition and firm value is less pronounced for firms with higher firm-level liquidation risk, stronger country-level investor protection mechanisms, and higher firm-level transparency. These findings are consistent with an agency cost benefit resulting from product market competition.ETDIn CopyrightProduct Market CompetitionFirm ValueLiquidation RiskAgency CostsTransparencyDissertation