IDEAS home Printed from https://ideas.repec.org/p/zbw/sfb373/200195.html
   My bibliography  Save this paper

The relative importance of group-level effects on the performance of German companies

Author

Listed:
  • Brenner, Steffen
  • Bunke, Olaf
  • Droge, Bernd
  • Schwalbach, Joachim

Abstract

We examine the impact of performance groups on the estimation of the relative importance of firm, industry and other effects on corporate performance. Performance groups comprise firms from the same industry with a similar performance over a longer period of time. We present a statistical method which improves the procedure of variance decomposition by allowing firm effects and the interacting effects of firms and time to be unified into the group effects. Applied to a German data set of 219 companies observed over a period of eleven years (1987-1997) it appears that the majority of the firms can be ascribed to performance groups. The variance proportion of the group effects is about one half of the non-grouped firm effects. They explain about 17.9 percent of the total variance of the returns.

Suggested Citation

  • Brenner, Steffen & Bunke, Olaf & Droge, Bernd & Schwalbach, Joachim, 2001. "The relative importance of group-level effects on the performance of German companies," SFB 373 Discussion Papers 2001,95, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  • Handle: RePEc:zbw:sfb373:200195
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/62725/1/725962410.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. R. E. Caves & M. E. Porter, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, Oxford University Press, vol. 91(2), pages 241-261.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:sfb373:200195. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/sfhubde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.