Sustainable competitive advantage and profitability persistence: Sources versus outcomes for assessing advantage

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Maury , B 2018 , ' Sustainable competitive advantage and profitability persistence: Sources versus outcomes for assessing advantage ' , Journal of Business Research , vol. 84 , pp. 100-113 . https://doi.org/10.1016/j.jbusres.2017.10.051

Title: Sustainable competitive advantage and profitability persistence: Sources versus outcomes for assessing advantage
Author: Maury, Benjamin
Contributor: Hanken School of Economics, Finance, Helsinki
Belongs to series: Journal of Business Research
ISSN: 0148-2963
Abstract: This paper explores how variables measuring firms' sustainable competitive advantages influence profitability persistence. Using a large sample of firms from MSCI 23 developed countries during 1985-2013, I find that an index of economic rents (such as size and market share) significantly reduce profit mean reversion, whereas traditional barriers-to-entry measures do not lower mean reversion. Higher previous long-term performance and sustained market share are associated with lower future mean reversion in profitability. Outcomes dominated sources of advantages, although both were useful in predicting future profitability persistence.
Date: 2018-03
Subject: 512 Business and Management
Mean reversion
return on assets
competitive advantage
barriers-to-entry
market share
KOTA2018
PREM2018_01
0 - Not open access
1 - Self archived
https://helda.helsinki.fi/dhanken/handle/10227/406241
0- Ingen av författarna har en utländsk affiliation
1- Publicerad utomlands
0- Ingen affiliation med ett företag
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