Explaining the Persistence of Profits: A Time-Varying Approach
AbstractThe present paper analyzes the determinants of profit persistence using a newly developed methodology that allows the persistence parameter to vary with time. It therefore addresses a significant limitation of previous persistence models, which have assumed unrealistically that persistence is fixed over relatively long periods of 20 years and upwards. The concentration of the industry is found to have a significant positive impact on profit persistence. However, at firm level, market share and risk have a surprisingly negative impact
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 20 (2013)
Issue (Month): 1 (February)
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Other versions of this item:
- Adelina Gschwandtner & Jesus Crespo Cuaresma, 2008. "Explaining the persistence of profits: A time-varying approach," Vienna Economics Papers 0806, University of Vienna, Department of Economics.
- L00 - Industrial Organization - - General - - - General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
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