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HOW MUCH DOES INDUSTRY MATTER, REALLY?
- Source :
- Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009; Jul97 Supplement 1, Vol. 18 Issue S1, p15-30, 16p
- Publication Year :
- 1997
-
Abstract
- In this paper, we examine the importance of year, industry, corporate-parent, and business-specific effects on the profitability of U.S. public corporations within specific 4-digit SIC categories. Our results indicate that year, industry, corporate-parent, and business-specific effects account for 2 percent, 19 percent, 4 percent, and 32 percent, respectively, of the aggregate variance in profitability. We also find that the importance of the effects differs substantially across broad economic sectors. Industry effects account for a smaller portion of profit variance in manufacturing but a larger portion in lodging/entertainment, services, wholesale/retail trade, and transportation. Across all sectors we find a negative covariance between corporate-parent and industry effects. A detailed analysis suggests that industry, corporate-parent, and business-specific effects are related in complex ways. © 1997 by John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 01432095
- Volume :
- 18
- Issue :
- S1
- Database :
- Complementary Index
- Journal :
- Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009
- Publication Type :
- Academic Journal
- Accession number :
- 17077543
- Full Text :
- https://doi.org/10.1002/(sici)1097-0266(199707)18:1+<15::aid-smj916>3.3.co;2-t