eCite Digital Repository
The Determinants of Firm Profitability in Australian Manufacturing
Citation
McDonald, JT, The Determinants of Firm Profitability in Australian Manufacturing, The Economic Record, 75, (229) pp. 115-126. ISSN 0013-0249 (1999) [Refereed Article]
DOI: doi:10.1111/j.1475-4932.1999.tb02440.x
Abstract
This study provides new evidence on the determinants of the profitability of Australian manufacturing firms by analyzing a unique firm-level data set of firm performance over the period 1984-93. The panel nature of the data permits the estimation of dynamic profitability models over the business cycle, to test both the persistence and cyclicality of firm profitability. Econometric results suggest that lagged profitability is a significant determinant of current profit margins, and that industry concentration is positively related to firm profit margins. Also, profit margins are found to be procyclical in concentrated industries but counter-cyclical in less concentrated industries.
Item Details
| Item Type: | Refereed Article |
|---|---|
| Research Division: | Economics |
| Research Group: | Applied Economics |
| Research Field: | Industry Economics and Industrial Organisation |
| Objective Division: | Economic Framework |
| Objective Group: | Microeconomics |
| Objective Field: | Industry Costs and Structure |
| Author: | McDonald, JT (Mr Ted McDonald) |
| ID Code: | 17490 |
| Year Published: | 1999 |
| Web of Science® Times Cited: | 30 |
| Deposited By: | Economics and Finance |
| Deposited On: | 1999-08-01 |
| Last Modified: | 2000-05-04 |
| Downloads: | 0 |
Repository Staff Only: item control page