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Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.3/207148
- Determinants of profitability: an analysis of large Australian firms
- Stierwald, Andreas
- This paper identifies the determinants of firm profitability and quantifies their relative importance. Using a panel of large Australian firms for the period 1995 to 2005, the analysis estimates a dynamic profit model that, unlike most existing research, directly includes measures of productivity and productivity persistence. Descriptive statistics illustrate that the sample is characterized by a large amount of profit heterogeneity, and that substantial differences exist between industries and across firms. Estimation results indicate that firm profitability is predominantly determined by firm-level characteristics, and that sector effects are relevant, but to a much smaller extent. The analysis also reveals that, among firm effects, productivity and productivity persistence enhance profitability.
- Publication type
- Melbourne Institute Working Paper Series, Working Paper No. 3/10
- Publication year
- Determinants of profit; Dynamic panel bias; Firm performance; Total factor productivity
- Melbourne Institute of Applied Economic and Social Research, The University of Melbourne
- 9780734042132, 0734042132, 1328-4991 (series ISSN)
- Publisher URL
- Copyright © 2010.