How do industry and country impact firm performance? A national and supranational analysis

Hernan Etiennot (), Roberto Vassolo (), Francisco Diaz Hermelo () and Anita McGahan ()
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Hernan Etiennot: IAE – Universidad Austral
Roberto Vassolo: IAE – Universidad Austral
Francisco Diaz Hermelo: IAE – Universidad Austral
Anita McGahan: University of Toronto

Review of Managerial Science, 2019, vol. 13, issue 4, No 7, 821 pages

Abstract: Abstract We contribute to the literature of the country, industry and firm effects on performance by developing an autoregressive cross-classified mixed-effect linear model that examines heterogeneity in the profitability of corporations in emerging and developed economies, as well as corporations located in different supranational regions. To this purpose, we simultaneously decompose abnormal returns into permanent and transitory components at the firm, industry, country and industry–country levels. We find that firms in emerging countries have significantly higher rates of performance persistence and different sources of persistence compared to firms located in developed countries. These differences are also evident between different supranational regions and countries at different levels of institutional development.

Keywords: Performance; Hierarchical linear modeling; Emerging and developed economies; Competitive structure; 62 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11846-017-0260-1

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