COMPARISON OF THE PROFITABILITY OF TOP 1000 FIRMS IN CANADA AND USA

Shah Saud () and Waqar Badshah ()
Additional contact information
Shah Saud: Lakehead University, Canada
Waqar Badshah: Istanbul Sabahattin Zaim University, Istanbul, Turkey

Scientific Bulletin - Economic Sciences, 2016, vol. 15, issue 1, 16-32

Abstract: This study examines large Canadian and US firms to decompose the variation of firm profitability into year, industry, year-industry and firm components. Return on Assets (ROA), Return on Equity (ROE) and Return on Sales (ROS) provide three measures of firm profitability. For all three measures and both countries, firm effects provide the biggest contribution to the variability in firm profits with year-industry effects second, year effects third, and industry effects last. These results match those of previous studies. Comparing Canadian and US firms, firm effects explain more of the variation in the profitability of Canadian firms. Finally, the combination of industry, year and firm factors explain more the overall variation in profitability of our sample of Canadian firms than our sample of US firms.

Keywords: Return on Equity (ROE); Return on Asset (ROA); Return on Sale (ROS). (search for similar items in EconPapers)
JEL-codes: F65 G20 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://economic.upit.ro/repec/pdf/2016_1_2.pdf (application/pdf)

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:pts:journl:y:2016:i:1:p:16-32

Access Statistics for this article

Scientific Bulletin - Economic Sciences is currently edited by Alina Hagiu

More articles in Scientific Bulletin - Economic Sciences from University of Pitesti Contact information at EDIRC.
Bibliographic data for series maintained by Alina Hagiu ().