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What drives firm profitability? A comparison of the US and EU food processing industry: Discussion Paper 16/12

Gschwandtner, Adelina and Hirsch, Stefan (2016) What drives firm profitability? A comparison of the US and EU food processing industry: Discussion Paper 16/12. Discussion paper. University of Kent, Canterbury, Kent

Abstract

This article analyzes persistence and the drivers of profitability in US and EU food processing using GMM estimations. Due to different firm size structures first comparable samples of US and EU food processors are derived using Propensity Score Matching. The GMM results indicate that profit persistence in food processing is lower than in other manufacturing sectors. Firm-specific drivers of profitability are size, growth and financial risk. Regarding industry characteristics the growth rate significantly influences profitability. The findings provide insights for the management of food processing firms as well as for policy decisions aiming to counter power imbalances in the food sector.

Item Type: Monograph (Discussion paper)
Additional information: The content of this paper has been developed and extended. A record for the later work is available here https://kar.kent.ac.uk/62494/
Uncontrolled keywords: Firm profit; persistence; food industry; GMM panel estimation; propensity score matching
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Adelina Gschwandtner
Date Deposited: 06 Mar 2017 14:03 UTC
Last Modified: 01 Feb 2020 04:08 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/60743 (The current URI for this page, for reference purposes)
Gschwandtner, Adelina: https://orcid.org/0000-0002-6952-1782
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