Quotation Crespo Cuaresma, Jesus, Gschwandtner, Adelina. 2008. Explaining the persistence of profits: A time-varying approach.




The present paper analyzes the determinants of profit persistence using a newly developed methodology that allows for the persistence parameter to vary with time. It therefore addresses a significant limitation of previous persistence models, which have assumed unrealistically that persistence is fixed over relatively long period of 20 years upwards. The concentration and the size of the industry are found to have a significant positive impact on profit persistence. However, at firm level, market share and risk have surprisingly a negative impact on profit persistence.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Explaining the persistence of profits: A time-varying approach
Year 2008
URL http://www.univie.ac.at/vwl/Working%20Papers/2008/vie0806.pdf


Crespo Cuaresma, Jesus (Details)
Gschwandtner, Adelina (Former researcher)
Institute for Statistics and Mathematics IN (Details)
Department of Economics (Crespo Cuaresma) (Details)
Research Institute for Human Capital and Development FI (Former organization)
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