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Sustainable Business in Norway: The Firm or the Industry Effect?

Author

Listed:
  • Muhammad Azeem Qureshi

    (Oslo Business School, Oslo Metropolitan University, 0130 Oslo, Norway)

  • Fred H. Strønen

    (Oslo Business School, Oslo Metropolitan University, 0130 Oslo, Norway)

  • Marius Tyseng

    (Oslo Business School, Oslo Metropolitan University, 0130 Oslo, Norway)

  • Marius Urdal

    (Oslo Business School, Oslo Metropolitan University, 0130 Oslo, Norway)

Abstract

Explaining sources of profitability has been a major research stream in corporate finance and strategic management literature for decades. However, we have limited understanding of the sources of variations in firm profitability, especially in Norway, where the linkage of the sustainability of business entities and the economic sustainability of Norway is quite pronounced due to the extended role of the state actively engaged in business activities. Using a unique and all-inclusive dataset of all businesses in all sectors having various ownership forms over 2008–2016 of this advanced service economy, this study opens the black box of variations in profitability of Norwegian businesses. Overall, firm characteristics explain most of the variation in profitability, but we identify one industry where the industry effect dominates. Among several variables, long-term finance and short-term finance explain most of the variations in profitability.

Suggested Citation

  • Muhammad Azeem Qureshi & Fred H. Strønen & Marius Tyseng & Marius Urdal, 2020. "Sustainable Business in Norway: The Firm or the Industry Effect?," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3271-:d:346745
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    References listed on IDEAS

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