Description
The present study is the first that analyzes profit persistence in the European Food Industry. Belgium, France, Italy, Spain and the United Kingdom are analyzed in terms of food industry profit persistence during the period 1996 to 2008. The results suggest that profits in general tend to converge towards a competitive norm. However, this process seems to be far from completion since a significant number of firms are estimated to earn profits above or below the competitive norm in the long run. The highest degree of profit persistence is found for the UK. Overall the average degree of persistence seems to be considerably lower compared to other manufacturing sectors. Significant positive determinants of profit persistence are industry size, industry growth and contrary to the results for other manufacturing sectors firm size. Significant negative determinants seem to be a firm's age, its risk and, surprisingly, the R&D intensity.| Period | 19 May 2011 |
|---|---|
| Event title | Research Seminar in Industrial Organization |
| Event type | Unknown |