The structure of profitability around the world

The structure of profitability around the world

by Tarun Khanna, Jan W. Rivkin, Harvard Business School. Division of Research

Part of Working paper / Division of Research, Harvard Business School -- 01-056

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Analysis of data from from advanced economies and theories from industrial economics have predisposed many strategists towards a belief that patterns of profitability are structurally similar around the world. We question the universality of such patterns. With time-series data on publicly traded firms in 43 nations, we compare profitability patterns across countries in two ways.

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