We model the immediate responses of firms’ daily idiosyncratic stock returns to the idiosyncratic returns of the firms’ rivals, using spatial econometric techniques. Contagion effect of rivals dominates competitive effect, and the net effect is larger when firms respond to negative return...

We investigate how corporate environmental performance propagates in firm networks. We find the strongest effect among competitors. The degree of spillover depends on competitors’ relative market share and number of connections in different networks. It is especially strong among competitors...