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Industry, firm, year and country effects on profitability in EU food processing

  • Jan Schiefer

    ()

  • Stefan Hirsch

    ()

  • Monika Hartmann

    ()

  • Adelina Gschwandtner

    ()

Registered author(s):

    We decompose the variance of food industry return-on-assets into industry, firm, year and country effects. After determining significance in a nested ANOVA, we estimate the magnitude using components of variance in a large sample of corporations. As a robustness check, we estimate a multilevel model that additionally allows us to estimate the impact of several covariates at each level. The results show that firm characteristics are more important than industry structure in determining food industry profitability. In particular, firm size seems to be an important driver of profitability while firm risk, age and, surprisingly market share have a negative influence.

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    File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/1309.pdf
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    Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 1309.

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    Date of creation: May 2013
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    Handle: RePEc:ukc:ukcedp:1309
    Contact details of provider: Postal: School of Economics, University of Kent, Canterbury, Kent, CT2 7NP
    Phone: +44 (0)1227 827497
    Web page: http://www.kent.ac.uk/economics/

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