Jiang, N., Kattuman, P. and Kotia, A. (2017) Polarisation and Reversion under Competition: Profitability of Indian Firms. International Journal of the Economics of Business, 24 (2). pp. 131-151. ISSN 1357-1516
Abstract
We analyse profitability dynamics in a large emerging economy, India, over the two-and-a-half decades since economic liberalisation began in earnest. We find that the average rate at which Indian firms reverted to normal profitability increased significantly, particularly for firms earning supernormal profits. In contrast, firms earning below-normal profitability have been marked by little reversion to normal. Inducing underperforming firms to improve their profitability is of great policy importance. The pattern in profitability dynamics of Indian firms in the early years was consistent with a polarised long-run profitability distribution. The polarisation tendency was reversed in later years, but the projected long-run profitability distribution has a substantial underperforming tail.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | This is an Accepted Manuscript of an article published by Taylor & Francis in International Journal of the Economics of Business on 13 Mar 2017, available online: https://doi.org/10.1080/13571516.2017.1290750 |
Keywords: | Intensity of Competition; Profitability Dynamics; Reversion; Volatility; India; Liberalisation JEL Classifications: M21, P27, P52 |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 27 Apr 2018 13:49 |
Last Modified: | 13 Sep 2018 00:39 |
Published Version: | https://doi.org/10.1080/13571516.2017.1290750 |
Status: | Published |
Publisher: | Taylor & Francis |
Refereed: | Yes |
Identification Number: | 10.1080/13571516.2017.1290750 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:130048 |