What we Know (or Think we Know) About the Causes of Superior Financial Performance

Noel Capon, John U. Farley and Scott Hoenig
Additional contact information
Noel Capon: Columbia University
John U. Farley: Dartmouth College
Scott Hoenig: Fordham University

Chapter II in Toward an Integrative Explanation of Corporate Financial Performance, 1996, pp 27-82 from Springer

Abstract: Abstract Both economic theory and historical experience support the importance of finding ways of achieving good financial performance for the long-term prosperity and survival of individual firms. Although economics is somewhat vague on how to achieve this end, owners and more recently hired managers have, in practice, attempted to make decisions to improve their companies’ financial performance in the face of complex environmental realities, an array of strategic choices and a variety of ways to organize. The continued existence today of firms incorporated in the late 19th and early 20th centuries (e.g., Ford, General Electric, Westinghouse) is testimony to some combination of successful managerial decisions, favorable business and economic conditions, and chance, leading to levels of financial performance acceptable over the long run. The disappearance, as independent entities, of many more once-successful organizations, born in a similar time period or later, is testimony to significant failure in achieving acceptable financial performance.

Keywords: Financial Performance; Firm Performance; Industrial Organization; Citation Count; Strategic Choice (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-94-011-5380-5_2

Ordering information: This item can be ordered from
http://www.springer.com/9789401153805

DOI: 10.1007/978-94-011-5380-5_2

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().