Skip header navigation

University of Stirling

×

Article

Profit persistence revisited: The case of the uk

Citation
McMillan D & Wohar ME (2011) Profit persistence revisited: The case of the uk. Manchester School, 79 (3), pp. 510-527. http://www.scopus.com/inward/record.url?partnerID=yv4JPVwI&eid=2-s2.0-79955001698&md5=2f33069a98f8945fc8eafb4bcd4d3962; https://doi.org/10.1111/j.1467-9957.2010.02177.x

Abstract
We use data on 57 firms over the period 1980-2007 to investigate profit persistence. We extend the literature by considering whether the parameter governing persistence varies between positive and negative profits (relative to normal). Thus, we are able to differentiate between entry and exit as conduits of the competitive model. Such information may be of importance to policy-makers in establishing competition legislation. We find firms with profits above normal are firms that have high barriers to entry and exit while firms with below-normal profits have low barriers to entry and exit.

Journal
Manchester School: Volume 79, Issue 3

StatusPublished
Author(s)McMillan, David; Wohar, Mark E
Publication date30/06/2011
PublisherBlackwell Publishing for the University of Manchester
Publisher URLhttp://www.scopus.com/…c8eafb4bcd4d3962
ISSN1463-6786
Scroll back to the top