Activity: Talk or presentation › Science to professionals/public
Description
The present study analyses and compares profit persistence during the periods 1950-66, 1967-83 and 1984-99 in the US. While most of the previous studies performed persistence analysis on survivors only, the present setup allows for
companies to enter and exit the analysed sample, giving a more comprehensive depiction of the US economy during this half of the century. The results point
toward a constant increase of competition after the opening of the US economy to international competition in the 1960-1980s. Key determinants of profit persistence seem to be the firm's and industry size, industry-growth, and more recently risk and advertising.