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Profit persistence in the food industry: evidence from five European countries

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  • Stefan Hirsch
  • Adelina Gschwandtner
Abstract
The present article is the first that analyses profit persistence in the European food industry. Based on the Arellano and Bond GMM estimator, the degree of profit persistence and the drivers of persistence are quantified for a large sample of food processing firms. The analysis reveals that the degree of profit persistence in the food industry is lower compared with other manufacturing sectors due to strong competition among food processors and high retailer concentration. Furthermore, firm size is an important driver of persistence, while firm age, risk and R&D intensity have a negative influence. , Oxford University Press.

Suggested Citation

  • Stefan Hirsch & Adelina Gschwandtner, 2013. "Profit persistence in the food industry: evidence from five European countries," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(5), pages 741-759, December.
    • Handle: RePEc:oup:erevae:v:40:y:2013:i:5:p:741-759
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