This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Profit Margins and the Business Cycle: Evidence from UK Manufacturing Firms

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Machin, Stephen
Van Reenen, John

Additional information is available for the following registered author(s):

Abstract

This paper presents some empirical models of profitability using panel data covering 709 large U.K. companies ove r the 1970s and 1980s, focusing specifically on the role of aggregate demand shocks in shaping firm-level profitability. In basic regressi ons and in quite complex econometric models, the results suggest that firm-level profit margins fell heavily during the deep manufacturing recession of the early 1980s and, as such, are consistent with model s predicting the procyclical nature of profit margins. This result hol ds across different product groups (producer goods, consumer durables a nd nondurables), though the timing of the impact of aggregate shocks appears to differ. Copyright 1993 by Blackwell Publishing Ltd.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0022-1821%28199303%2941%3A1%3C29%3APMATBC%3E2.0.CO%3B2-H&origin=bc
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 41 (1993)
Issue (Month): 1 (March)
Pages: 29-50
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:jindec:v:41:y:1993:i:1:p:29-50

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0022-1821

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ghosal, Vivek, 2007. "Small is Beautiful but Size Matters: The Asymmetric Impact of Uncertainty and Sunk Costs on Small and Large Businesses," MPRA Paper 5461, University Library of Munich, Germany. [Downloadable!]
  2. Mariko Sakakibara & Hideki Yamawaki, 2008. "What determines the profitability of foreign direct investment? A subsidiary-level analysis of Japanese multinationals," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 277-292. [Downloadable!]
  3. Warren, Paul, 2005. "Rentabilité des entreprises sous contrôle canadien par rapport aux entreprises sous contrôle américain," Série de documents de recherche sur l'analyse économique (AE) 2005030f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  4. Mirko Draca & Stephen Machin & John Van Reenen, 2006. "Minimum Wages and Firm Profitability," CEP Discussion Papers dp0715, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  5. Natalia Isachenkova & John Hunter, 2002. "A Panel Analysis Of UK Industrial Company Failure," ESRC Centre for Business Research - Working Papers wp228, ESRC Centre for Business Research. [Downloadable!]
    Other versions:
  6. Ian Small, . "The cyclicality of Mark-ups and Profit Margins: Some Evidence for Manufacturing and Services," Bank of England working papers 72, Bank of England. [Downloadable!]
  7. Alberto Jaramillo & Adriana Ángel Jiménez & Andrea Restrepo Ramírez & Ana Consuelo Serrano, 2002. "Sector bancario y coyuntura económica. El caso colombiano 1990-2000," Grupo de estudios en economía y empresa 003921, EAFIT-GRUPO DE ESTUDIOS EN ECONOMIA Y EMPRESA (GEE). [Downloadable!]
  8. Arnab Bhattacharjee & Chris Higson & Sean Holly & Paul Kattuman, 2007. " Macroeconomic Conditions and Business Exit: Determinants of Failures and Acquisitions of UK Firms," CDMA Working Paper Series 0713, Centre for Dynamic Macroeconomic Analysis. [Downloadable!]
  9. Vivek Ghosal, 2003. "Impact of Uncertainty and Sunk Costs on Firm Survival and Industry Dynamics," CIG Working Papers SP II 2003-12, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
    Other versions:
  10. Esperanza Gracia, 1999. "Márgenes y cuotas de mercado. Un análisis con un micropanel," Investigaciones Economicas, Fundación SEPI, vol. 23(3), pages 393-428, September. [Downloadable!]
  11. Higson, C. & Holly, S. & Kattuman, P. & S. Platis, 2001. "The Business Cycle, Macroeconomic Shocks and the Cross Section: The Growth of UK Quoted Companies," Cambridge Working Papers in Economics 0114, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  12. Alberto Jaramillo & Hermilson Velásquez & Javier Santiago Ortiz & Natalia Serna, 2003. "Aspectos teóricos y empíricos de la relación empresas bancos," Grupo de estudios en economía y empresa 003922, EAFIT-GRUPO DE ESTUDIOS EN ECONOMIA Y EMPRESA (GEE). [Downloadable!]
  13. Sophocles N. Brissimis & Theodora S. Kosma, 2006. "Market Conduct, Price Interdependence and Exchange Rate Pass-Through," Working Papers 51, Bank of Greece. [Downloadable!]
  14. James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer, vol. 15(2), pages 183-200, September. [Downloadable!] (restricted)
  15. Yosuke Okada, 2005. "Competition and Productivity in Japanese Manufacturing Industries," NBER Working Papers 11540, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? IDEAS also indexes software components.

This page was last updated on 2009-12-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.