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Relationship between Home Depot and Lowe’s Under Impact of Major Events
Jia-Yi Chen1 and Grant Yang2*
1School of Accounting and Finance, Xiamen University Tan Kah Kee College, Fujian, China
2Department of Agricultural Economics, The Pennsylvania State University, Pennsylvania, USA
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Abstract:
Home Depot and Lowe’s are two of the world’s largest home building materials retailers. We analyze whether the two are in a competitive relationship or the same dilemma under the impact of major events by using the obvious structural breakpoints and combining them with the event research method. An empirical study of the major events is conducted corresponding to the major events at the time node where the obvious structural breakpoints are located. Based on the revenue and profit data from 1996 to 2021, the two companies are compared for the changes in revenue and profits under the impact of the same major event. The results show that the major events affect the development of the entire home building materials retail industry and the company's operation. The internal impact prompts both parties to actively adjust their internal business to be competitive, and several events affect only individual companies. However, certain significant events have little impact on the company’s revenue.
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Keywords: Unit Root Test, Structural Breakpoint, Event Study Method
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Received:May 16, 2022; Revised:May 31, 2022; Accepted:June 16, 2022; Published:June 30, 2022
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*Corresponding author; e-mail: grant@g2.usc.edu.tw
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Citation:Chen, J.Y., & Yang, G.(2022). Relationship between Home Depot and Lowe’s Under Impact of Major Events. International Journal of Business Studies and Innovation, 2(2), 13-24. https://doi.org/10.35745/ijbsi2022v02.02.0002
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Copyright: ©
2022
The Author(s). Published with license by IIKII, Singapore. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
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