On the assessment of corporate productivity changes and their impact on financial performance

Johannes E Harl and Rudi K Bresser

Omega, 1984, vol. 12, issue 4, 363-370

Abstract: This paper explores desirable characteristics of a corporate productivity measure (CPM). Such a measure is defined and offered as an alternative to approaches presented in the literature. In addition, the accuracy of several productivity measures is explored and the CPM developed here is observed to be most precise. This finding is utilized to assess the dependency of profitability on productivity. For the sample firms a surprisingly low impact is observed, which demonstrates that productivity changes generally do not influence profitability to a high degree.

Date: 1984
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