Article
Firm and industry effects in accounting versus economic profit data
Applied Economics Letters
(2011)
Abstract
This article presents estimates of firm and industry fixed-effects on profit rates for large US corporations, using both Economic Value Added (EVA), the popular measure of profits produced by Stern Stewart and Company, as well as simple (unadjusted) accounting measures as the dependent variable. We find that the improvement in explanatory power of the fixed-effect model is substantially greater when using EVA than has been documented with alternative measures.
Disciplines
Publication Date
2011
DOI
10.1080/13504851003761756
Publisher Statement
Copyright © 2011 Taylor & Francis. This is the pre-peer reviewed version of an article published in Applied Economics Letters, which has been published in final form at http://dx.doi.org/10.1080/13504851003761756.
Citation Information
Matthew J. Holian and Ali M. Reza. "Firm and industry effects in accounting versus economic profit data" Applied Economics Letters Vol. 18 Iss. 6 (2011) p. 527 - 529 ISSN: 1350-4851 Available at: http://works.bepress.com/matthew_holian/5/