Firm, industry and corporation effects revisited: a mixed multilevel analysis for Chilean companies

J. Tarzijan and C. Ramirez

Applied Economics Letters, 2011, vol. 18, issue 1, 95-100

Abstract: The relative importance of the corporate, industry and firm effects on business performance has been studied profusely in the literature. Until now, little has been said about the nested structure of the problem. The multilevel analysis appears as a good alternative over the approaches used so far to better understand this phenomenon. This article analyses the significance of the aforesaid effects on Chilean firms and assesses the impact of various regressors on residual variances. The export intensity of firms and industries proved to have a significant impact on the estimated industry effect, making the industry-related variance statistically not different from zero. However, the industry's influence did not totally disappear, because the effect of export intensity on firms' profitability depends on the industry to which the firm belongs. Moreover, firm size turns out to be significant and positively associated with firm's return, which can be evidence of economies of scale or more efficient processes as a company grows in size.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:18:y:2011:i:1:p:95-100

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504850903425165

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().