Persistence of profitability in Latin America: Explaining the differences among countries, industries and firms
Loading...
Date
2010
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
CONSEJO LATINOAMERICANO ESCUELAS ADM-CLADEA
Abstract
This article determines the level of persistence of profits econometrically and the differences in such a level, for different Latin American countries (Argentina, Brazil, Chile, Mexico and Peru) and for the USA. Furthermore, the article also evaluates persistence coefficients for individual companies and industries in each country and explains these coefficients. These comparisons are interesting since the questions about the determinants of performance and its persistence have been central to strategic management for several years, and there are no convincing explanations or empirical work that evaluate the variables that explain the possible variations in profit persistence across countries. Among our conclusions, we found that, at the country level, external debt, openness to international trade, country risk and foreign investment have a significantly negative impact on persistence of profits.
Description
Keywords
persistence of profits, competitiveness in Latin America, strategic management, PROFITS