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How fares the "commanding heights" of the Swiss economy? Evidence from the Crux of Capitalism project

Author

Listed:
  • Magaly Abboud
  • Fabio Bernasconi
  • Sára Czégé
  • Camilla Erencin
  • Simon J. Evenett
  • Felix Reitz

Abstract

The track record of Swiss publicly listed companies in creating economic value is assessed, along with their propensity to experience corporate distress. This assessment is conducted both in absolute terms and relative to foreign peers for the years 2005 to 2022. Established measures of corporate distress are augmented by a specially constructed economic profits measure assembled from quarterly financial reports. While on average Swiss firms perform better in economic profit terms than rivals from neighboring countries, there are doubts as to whether Swiss firms can generate higher levels of economic profit in the future, especially as the cost of capital is rising.

Suggested Citation

  • Magaly Abboud & Fabio Bernasconi & Sára Czégé & Camilla Erencin & Simon J. Evenett & Felix Reitz, 2023. "How fares the "commanding heights" of the Swiss economy? Evidence from the Crux of Capitalism project," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 73(01), pages 1-32, December.
    • Handle: RePEc:usg:auswrt:2023:73:01:1-32
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic profits; economic value creation; corporate distress; bankruptcy; Switzerland;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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