Oscillate Wildly: asymmetries and persistence in company-level profitability

Quarterly Bulletin 2001 Q2
Published on 01 June 2001

By Andrew Benito

Competition is central to an understanding of the corporate sector. Such competitive forces are best viewed in the dynamic sense of how quickly high rates of profit are competed away by entry and the threat of entry, and how quickly less profitable companies that survive improve their financial health. If profits persist from one year to the next this indicates that competitive forces do not act especially swiftly in removing such abnormal returns.

PDFOscillate Wildly: asymmetries and persistence in company-level profitability


Other Quarterly Bulletin 2001 Q2 articles

Was this page useful?
Add your details...