Evolution of the largest US corporations 1950 - 2000

Adelina Gschwandtner

Publikation: AbschlussarbeitDissertation

Abstract

The main aim of this study is to analyze the history of the
largest 500 US companies of 1950 in terms of survival and profit
persistence. For this the data was divided in 7 different
sub-samples: survivors, new entrants, disappearing firms and four
"20-years" periods 1950-72, 1960-80, 1970-90, 1980-1999.

The results go in line with the preceding literature. On average
profits converge toward a competitive norm, but for a significant
fraction of firms this convergence is incomplete. In five out of
the seven samples the hypothesis that all the long run projected
profit rates converge to a common competitive level could be
rejected at least at 5 %. In all of the seven samples at least
22,86% of the firms had a long run projected profit rate that
did not converge to the norm. The speed of adjustment parameter
lambda was significantly different from zero at least
in 15.38 % of the cases in each subsample.

The fact that a significant number of firms have profits that
persist over a period of 50 years is a strong challenge to the
competitive environment hypothesis.
OriginalspracheEnglisch
Gradverleihende Hochschule
  • Universität Wien
PublikationsstatusVeröffentlicht - 1 Juli 2002

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