An empirical study of the variance of Belgium firm profitability
In this paper, we perform an empirical analysis on the variance of accounting profitability among manufacturing firms in the Belgian economy from 1992 to 2001. Our purpose is to understand the relative importance of industry, business unit and time on the profitability of Belgian companies described by 3 and 4-digit NACEBEL codes during this time period. Our results so far reveal very large business unit effects and relatively small but significant industry and industry-year interaction effects. These findings suggest that there is much higher within-industry than among-industry variance in Belgian manufacturing firm profitability.
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Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
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