International Differences in Profitability*

We examine the global distribution of company profitability over the 30 years from 1989 to 2018 focusing on the international dimension. We find the international component of profitability differences first declines and then rises. Regression analysis of time-series data shows that transitory shock...

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Main Authors: Bloch, Harry, Zhou, Y.
Format: Journal Article
Published: 2024
Online Access:http://hdl.handle.net/20.500.11937/95063
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author Bloch, Harry
Zhou, Y.
author_facet Bloch, Harry
Zhou, Y.
author_sort Bloch, Harry
building Curtin Institutional Repository
collection Online Access
description We examine the global distribution of company profitability over the 30 years from 1989 to 2018 focusing on the international dimension. We find the international component of profitability differences first declines and then rises. Regression analysis of time-series data shows that transitory shocks to international profitability differences mostly dissipate over a few years, although there is evidence of persistent profitability differences for many countries. Dividing the sample to accommodate a structural break, the rate of dissipation declines between 1989–2002 and 2003–2018 subperiods. The extent of persistent differences also declines, suggesting convergence of international differences in profitability may have reached its limit.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-950632024-06-10T00:16:45Z International Differences in Profitability* Bloch, Harry Zhou, Y. We examine the global distribution of company profitability over the 30 years from 1989 to 2018 focusing on the international dimension. We find the international component of profitability differences first declines and then rises. Regression analysis of time-series data shows that transitory shocks to international profitability differences mostly dissipate over a few years, although there is evidence of persistent profitability differences for many countries. Dividing the sample to accommodate a structural break, the rate of dissipation declines between 1989–2002 and 2003–2018 subperiods. The extent of persistent differences also declines, suggesting convergence of international differences in profitability may have reached its limit. 2024 Journal Article http://hdl.handle.net/20.500.11937/95063 10.1111/1475-4932.12769 http://creativecommons.org/licenses/by-nc-nd/4.0/ fulltext
spellingShingle Bloch, Harry
Zhou, Y.
International Differences in Profitability*
title International Differences in Profitability*
title_full International Differences in Profitability*
title_fullStr International Differences in Profitability*
title_full_unstemmed International Differences in Profitability*
title_short International Differences in Profitability*
title_sort international differences in profitability*
url http://hdl.handle.net/20.500.11937/95063