Dr. Stefan Hirsch, University of Bonn
Seminar Title: "Profitability in the Food Industry: A Comparison of the EU and U.S."
Abstract:
International food processing industries are characterized by a high degree of market saturation leading to intense competition among firms in these industries. In addition, firms are facing economic circumstances which are characterized by intensified globalization. Therefore, this paper analyzes profit persistence as well as the drivers of profitability in the EU and US food industry using Arellano and Bond GMM estimations. Due to different structures in firm size comparable samples of EU and US food processors are derived by means of Propensity Score Matching. The results indicate that the persistence of profitability in the EU as well as in the US food industry is lower compared to other manufacturing sectors. Firm specific drivers of profitability turn out to be firm size and growth as well as low financial risk. With regards to industry characteristics the growth rate measured by the growth in industry sales has a significant impact on profitability.
Friday, September 25, 2015
12:00 - 1:15 p.m.
W.B. Young Building, room 327
For more information, contact: Tatiana Andreyeva at tatiana.andreyeva@uconn.edu