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Sources of variation in firm profitability and growth

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Author Info
Goddard, John
Tavakoli, Manouche
Wilson, John O.S.
Abstract

This article reports an analysis of the sources of variation in profitability and growth for manufacturing firms located in eleven European countries. A variance decomposition analysis determines the importance of the country, industry, corporate group and firm effects on profitability and growth. The analysis reveals evidence of differences between industries in the comparative advantage offered by different countries, reflecting a tendency for specialization and geographic concentration. However, as in several previous studies, the firm-level effects are the most important class of effect in explaining the variation in performance.

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File URL: http://www.sciencedirect.com/science/article/B6V7S-4S0R6SS-2/2/5a2da45f14d0f451148f37c57cd8f2d4
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Publisher Info
Article provided by Elsevier in its journal Journal of Business Research.

Volume (Year): 62 (2009)
Issue (Month): 4 (April)
Pages: 495-508
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eee:jbrese:v:62:y:2009:i:4:p:495-508

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Web page: http://www.elsevier.com/locate/jbusres

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Related research
Keywords: Firm; industry and country effects Growth Profitability Variance decomposition;

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This page was last updated on 2009-11-7.


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