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The impact of home-country institutions and competition on firm profitability

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  • Cherchye, Laurens
  • Verriest, Arnt

Abstract

Firm profitability depends on firm characteristics, industry structure and home-country institutions. Firm profitability is negatively associated with institutional quality. The effect of entry regulation on profitability runs through competition, while the effect of legal and political institutions only partially runs through competition.

Suggested Citation

  • Cherchye, Laurens & Verriest, Arnt, 2016. "The impact of home-country institutions and competition on firm profitability," International Business Review, Elsevier, vol. 25(4), pages 831-846.
    • Handle: RePEc:eee:iburev:v:25:y:2016:i:4:p:831-846
    DOI: 10.1016/j.ibusrev.2015.10.005
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