This paper provides evidence that incumbent and entrant firms' access to business group deep pockets affects entry … patterns in product markets. Relying on a unique French data set on business groups, this paper shows that entry in … groups' cash. In line with theoretical predictions, we find that the impact on entry of group cash holdings is more important …

We provide evidence that incumbent and entrant firms' access to business group deep pockets affects the entry patterns … in product markets. Relying on a unique French data set on business groups, our paper shows that entry into manufacturing …' cash. In line with theoretical predictions, we find that the impact of group cash holdingson entry is more important in …

We provide evidence suggesting that incumbents’ access to group deep pockets has a negative impact on entry in product … cash holdings owned by incumbent-affiliated groups is negatively related to entry in a market. Second, the impact on entry …, the ‘entry deterring effeect’ of group deep pockets is more pronounced when groups have more active internal capital …

) vulnerable to entry deterrence. Also, resource flexibility within a group makes subsidiaries' reaction functions flatter, thus … discouraging rivals' strategic commitments when entry is accommodated. …