A dynamic panel analysis of the profitability of Australian tax entities

This paper investigates the determinants of profitability of Australian tax entities using data for 91 different industries over the period 1991/ 92 to 1996/97. A simple oligopoly model is augmented with lagged profitability to allow for persistence of profitability shocks. The Wansbeek-Bekker estim...

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Main Authors: Feeny, S., Harris, Mark, Rogers, M.
Format: Journal Article
Language:English
Published: PHYSICA-VERLAG GMBH & CO 2005
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/81806
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author Feeny, S.
Harris, Mark
Rogers, M.
author_facet Feeny, S.
Harris, Mark
Rogers, M.
author_sort Feeny, S.
building Curtin Institutional Repository
collection Online Access
description This paper investigates the determinants of profitability of Australian tax entities using data for 91 different industries over the period 1991/ 92 to 1996/97. A simple oligopoly model is augmented with lagged profitability to allow for persistence of profitability shocks. The Wansbeek-Bekker estimator is used to control for endogeneity of this lagged dependent variable, whilst simultaneously controlling for observed and unobserved entity heterogeneity. Aggregate results suggest that profitability in the previous year, capital intensity, and barriers to entry have the expected positive association with current profitability. Market share - and to a lesser extent concentration - have a U shaped relationship with profitability. © Springer-Verlag 2005.
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spelling curtin-20.500.11937-818062021-03-16T03:43:00Z A dynamic panel analysis of the profitability of Australian tax entities Feeny, S. Harris, Mark Rogers, M. Social Sciences Economics Social Sciences, Mathematical Methods Business & Economics Mathematical Methods In Social Sciences firm performance market structure profitability tax entity dynamic panel model unobserved effects PRICE-COST MARGINS MANUFACTURING-INDUSTRIES FIRM PROFITABILITY TIME-SERIES DATA MODELS PROFIT BUSINESS DETERMINANTS PERFORMANCE PERSISTENCE This paper investigates the determinants of profitability of Australian tax entities using data for 91 different industries over the period 1991/ 92 to 1996/97. A simple oligopoly model is augmented with lagged profitability to allow for persistence of profitability shocks. The Wansbeek-Bekker estimator is used to control for endogeneity of this lagged dependent variable, whilst simultaneously controlling for observed and unobserved entity heterogeneity. Aggregate results suggest that profitability in the previous year, capital intensity, and barriers to entry have the expected positive association with current profitability. Market share - and to a lesser extent concentration - have a U shaped relationship with profitability. © Springer-Verlag 2005. 2005 Journal Article http://hdl.handle.net/20.500.11937/81806 10.1007/s00181-004-0230-8 English PHYSICA-VERLAG GMBH & CO restricted
spellingShingle Social Sciences
Economics
Social Sciences, Mathematical Methods
Business & Economics
Mathematical Methods In Social Sciences
firm performance
market structure
profitability
tax entity
dynamic panel model
unobserved effects
PRICE-COST MARGINS
MANUFACTURING-INDUSTRIES
FIRM PROFITABILITY
TIME-SERIES
DATA MODELS
PROFIT
BUSINESS
DETERMINANTS
PERFORMANCE
PERSISTENCE
Feeny, S.
Harris, Mark
Rogers, M.
A dynamic panel analysis of the profitability of Australian tax entities
title A dynamic panel analysis of the profitability of Australian tax entities
title_full A dynamic panel analysis of the profitability of Australian tax entities
title_fullStr A dynamic panel analysis of the profitability of Australian tax entities
title_full_unstemmed A dynamic panel analysis of the profitability of Australian tax entities
title_short A dynamic panel analysis of the profitability of Australian tax entities
title_sort dynamic panel analysis of the profitability of australian tax entities
topic Social Sciences
Economics
Social Sciences, Mathematical Methods
Business & Economics
Mathematical Methods In Social Sciences
firm performance
market structure
profitability
tax entity
dynamic panel model
unobserved effects
PRICE-COST MARGINS
MANUFACTURING-INDUSTRIES
FIRM PROFITABILITY
TIME-SERIES
DATA MODELS
PROFIT
BUSINESS
DETERMINANTS
PERFORMANCE
PERSISTENCE
url http://hdl.handle.net/20.500.11937/81806