What drives firm profitability? A comparison of the US and EU food processing industry

Gschwandtner, Adelina, Hirsch, Stefan (2017) What drives firm profitability? A comparison of the US and EU food processing industry. The Manchester School, 86 (3). pp. 390-416. ISSN 1463-6786. (doi:10.1111/manc.12201) (KAR id:62494)

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Official URL: http://dx.doi.org/10.1111/manc.12201

Abstract

This paper 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 and financial risk. Regarding industry characteristics concentration and the growth rate significantly influence profitability. The findings provide insights for the management of US and EU food processing firms aiming to enhance their competitiveness.

Item Type:	Article
DOI/Identification number:	10.1111/manc.12201
Uncontrolled keywords:	Firm profits, persistence, food industry, GMM panel estimation, propensity score matching
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management S Agriculture > S Agriculture (General)
Divisions:	Divisions > Division of Human and Social Sciences > School of Economics
Depositing User:	Adelina Gschwandtner
Date Deposited:	31 Jul 2017 14:08 UTC
Last Modified:	09 Dec 2022 03:52 UTC
Resource URI:	https://kar.kent.ac.uk/id/eprint/62494 (The current URI for this page, for reference purposes)
Gschwandtner, Adelina:	https://orcid.org/0000-0002-6952-1782

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