TY - JOUR
T1 - Markets vs. management
T2 - What 'drives' profitability?
AU - Roquebert, Jaime A.
AU - Phillips, Robert L.
AU - Westfall, Peter A.
PY - 1996/10
Y1 - 1996/10
N2 - This study addresses the issue of the relative degree of variance in ROA accounted for by industry, corporate, and SBU effects while controlling for the business cycle and the interaction between the business cycle and industry. Two key articles, Schmalensee (1985) and Rumelt (1991), are discussed in detail. Research results on a recent data base (COMPUSTAT), using variance components analysis (VARCOMP) are presented that not only confirm most of the Rumelt (1991) findings, but also suggest the existence of a corporate effect, heretofore undetected.
AB - This study addresses the issue of the relative degree of variance in ROA accounted for by industry, corporate, and SBU effects while controlling for the business cycle and the interaction between the business cycle and industry. Two key articles, Schmalensee (1985) and Rumelt (1991), are discussed in detail. Research results on a recent data base (COMPUSTAT), using variance components analysis (VARCOMP) are presented that not only confirm most of the Rumelt (1991) findings, but also suggest the existence of a corporate effect, heretofore undetected.
KW - Corporate effect
KW - Industry effect
KW - Profitability
KW - ROA
UR - http://www.scopus.com/inward/record.url?scp=0030251020&partnerID=8YFLogxK
U2 - 10.1002/(SICI)1097-0266(199610)17:8<653::AID-SMJ840>3.0.CO;2-O
DO - 10.1002/(SICI)1097-0266(199610)17:8<653::AID-SMJ840>3.0.CO;2-O
M3 - Article
AN - SCOPUS:0030251020
SN - 0143-2095
VL - 17
SP - 653
EP - 664
JO - Strategic Management Journal
JF - Strategic Management Journal
IS - 8
ER -