Sustainable Business in Norway: The Firm or the Industry Effect?

Muhammad Azeem Qureshi, Fred H. Strønen, Marius Tyseng and Marius Urdal
Additional contact information
Fred H. Strønen: Oslo Business School, Oslo Metropolitan University, 0130 Oslo, Norway
Marius Tyseng: Oslo Business School, Oslo Metropolitan University, 0130 Oslo, Norway
Marius Urdal: Oslo Business School, Oslo Metropolitan University, 0130 Oslo, Norway

Sustainability, 2020, vol. 12, issue 8, 1-13

Abstract: Explaining sources of profitability has been a major research stream in corporate finance and strategic management literature for decades. However, we have limited understanding of the sources of variations in firm profitability, especially in Norway, where the linkage of the sustainability of business entities and the economic sustainability of Norway is quite pronounced due to the extended role of the state actively engaged in business activities. Using a unique and all-inclusive dataset of all businesses in all sectors having various ownership forms over 2008–2016 of this advanced service economy, this study opens the black box of variations in profitability of Norwegian businesses. Overall, firm characteristics explain most of the variation in profitability, but we identify one industry where the industry effect dominates. Among several variables, long-term finance and short-term finance explain most of the variations in profitability.

Keywords: firm profitability; industry profitability; analysis of variance; industrial organization; industry analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/8/3271/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/8/3271/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:8:p:3271-:d:346745

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().