Abstract
The purpose of this paper is to develop and test a model that relates the profit rates of multinational firms to market share, other firm characteristics, and industry effects where the relevant geographic markets are defined at the global level. We test the proposition that market share and industry fixed effects can explain profitability variation for a sample of multinational firms. The most important finding is that market share has a positive and statistically significant effect on profit rates for a sample of Fortune Global 500 firms. Moreover, the Fortune Global 500 firms exhibit strong industry effects. While there are a number of explanations for a positive market share effect and strong industry effects, a common interpretation is the presence of rivalry among these firms.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
