Menu Expand

Persistence and Determinants of Firm Profit in Emerging Markets

Cite JOURNAL ARTICLE

Style

Stephan, A., Tsapin, A. Persistence and Determinants of Firm Profit in Emerging Markets. Applied Economics Quarterly, 54(4), 231-253. https://doi.org/10.3790/aeq.54.4.231
Stephan, Andreas and Tsapin, Andriy "Persistence and Determinants of Firm Profit in Emerging Markets" Applied Economics Quarterly 54.4, , 231-253. https://doi.org/10.3790/aeq.54.4.231
Stephan, Andreas/Tsapin, Andriy: Persistence and Determinants of Firm Profit in Emerging Markets, in: Applied Economics Quarterly, vol. 54, iss. 4, 231-253, [online] https://doi.org/10.3790/aeq.54.4.231

Format

Persistence and Determinants of Firm Profit in Emerging Markets

Stephan, Andreas | Tsapin, Andriy

Applied Economics Quarterly, Vol. 54 (2008), Iss. 4 : pp. 231–253

24 Citations (CrossRef)

Additional Information

Article Details

Pricing

Author Details

1Jönköping International Business School, DIW Berlin, Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology, Stockholm.

2Corresponding author. European University Viadrina, Frankfurt (Oder), Germany.

Cited By

  1. Firm Profitability: Mean-Reverting or Random-Walk Behavior?

    Canarella, Giorgio | Miller, Stephen M. | Nourayi, Mahmoud M.

    SSRN Electronic Journal, Vol. (2012), Iss.

    https://doi.org/10.2139/ssrn.2010816 [Citations: 1]
  2. Persistence in incarcerations: global comparative evidence

    Asongu, Simplice

    Journal of Criminological Research, Policy and Practice, Vol. 4 (2018), Iss. 2 P.136

    https://doi.org/10.1108/JCRPP-11-2017-0037 [Citations: 18]
  3. Why Do Firms Switch Their Main Bank?: Theory and Evidence from Ukraine

    Stephan, Andreas | Tsapin, Andriy | Talavera, Oleksandr

    SSRN Electronic Journal, Vol. (2009), Iss.

    https://doi.org/10.2139/ssrn.1464715 [Citations: 2]
  4. The Murder Epidemic: A Global Comparative Study

    Asongu, Simplice | Acha-Anyi, Paul

    SSRN Electronic Journal, Vol. (2017), Iss.

    https://doi.org/10.2139/ssrn.3109974 [Citations: 0]
  5. Drivers and Persistence of Death in Conflicts: Global Evidence

    Asongu, Simplice A. | Uduji, Joseph I. | Okolo-Obasi, Elda N.

    World Affairs, Vol. 183 (2020), Iss. 4 P.389

    https://doi.org/10.1177/0043820020964274 [Citations: 8]
  6. The Persistence of Bank Profit

    Goddard, John | Liu, Hong | Molyneux, Philip | Wilson, John O.S.

    SSRN Electronic Journal, Vol. (2011), Iss.

    https://doi.org/10.2139/ssrn.1695396 [Citations: 3]
  7. Dynamic Determinants of Access to Weapons: Global Evidence

    Asongu, Simplice A. | Nnanna, Joseph

    Foreign Trade Review, Vol. 54 (2019), Iss. 4 P.334

    https://doi.org/10.1177/0015732519874210 [Citations: 2]
  8. Dynamic Determinants of Access to Weapons: Global Evidence

    Asongu, Simplice | Nnanna, Joseph

    SSRN Electronic Journal, Vol. (2019), Iss.

    https://doi.org/10.2139/ssrn.3328018 [Citations: 0]
  9. SUCCESSFUL IN THE LONG RUN: A META‐REGRESSION ANALYSIS OF PERSISTENT FIRM PROFITS

    Hirsch, Stefan

    Journal of Economic Surveys, Vol. 32 (2018), Iss. 1 P.23

    https://doi.org/10.1111/joes.12188 [Citations: 28]
  10. The Persistence of Global Terrorism

    Asongu, Simplice

    SSRN Electronic Journal, Vol. (2019), Iss.

    https://doi.org/10.2139/ssrn.3447497 [Citations: 0]
  11. The Persistence of Profits of Banks in Africa

    Amidu, Mohammed | Harvey, Simon K.

    SSRN Electronic Journal, Vol. (2014), Iss.

    https://doi.org/10.2139/ssrn.2457972 [Citations: 0]
  12. The Murder Epidemic: A Global Comparative Study

    Asongu, Simplice A. | Acha-Anyi, Paul N.

    International Criminal Justice Review, Vol. 29 (2019), Iss. 2 P.105

    https://doi.org/10.1177/1057567718759584 [Citations: 69]
  13. The persistence of bank profit

    Goddard, John | Liu, Hong | Molyneux, Philip | Wilson, John O.S.

    Journal of Banking & Finance, Vol. 35 (2011), Iss. 11 P.2881

    https://doi.org/10.1016/j.jbankfin.2011.03.015 [Citations: 139]
  14. Does expected idiosyncratic skewness of firms' profit predict the cross-section of stock returns? Evidence from China

    Zhang, Qun | Zhang, Peihui | Liu, Hao

    Research in International Business and Finance, Vol. 64 (2023), Iss. P.101839

    https://doi.org/10.1016/j.ribaf.2022.101839 [Citations: 1]
  15. Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

    Adom, Philip Kofi | Amuakwa-Mensah, Franklin | Amuakwa-Mensah, Salome

    Financial Innovation, Vol. 6 (2020), Iss. 1

    https://doi.org/10.1186/s40854-020-00192-3 [Citations: 15]
  16. The Persistence of Weapons: Global Evidence

    Asongu, Simplice | Uduji, Joseph I. | Okolo-Obasi, Elda N.

    SSRN Electronic Journal , Vol. (2019), Iss.

    https://doi.org/10.2139/ssrn.3467528 [Citations: 0]
  17. The Persistence of Bank Profit

    Goddard, John | Liu, Hong | Molyneux, Philip | Wilson, John O.S.

    SSRN Electronic Journal, Vol. (2011), Iss.

    https://doi.org/10.2139/ssrn.1695396 [Citations: 3]
  18. Differences in bank profit persistence in Sub-Saharan Africa

    Sarpong-Kumankoma, Emmanuel | Abor, Joshua | Aboagye, Anthony Q.Q. | Amidu, Mohammed

    African Journal of Economic and Management Studies, Vol. 9 (2018), Iss. 4 P.512

    https://doi.org/10.1108/AJEMS-03-2017-0037 [Citations: 4]
  19. Political instability and political terror: Global evidence on persistence

    Asongu, Simplice A. | Uduji, Joseph I. | Okolo‐Obasi, Elda N.

    Journal of Public Affairs, Vol. 20 (2020), Iss. 3

    https://doi.org/10.1002/pa.2119 [Citations: 14]
  20. Firm profitability: Mean-reverting or random-walk behavior?

    Canarella, Giorgio | Miller, Stephen M. | Nourayi, Mahmoud M.

    Journal of Economics and Business, Vol. 66 (2013), Iss. P.76

    https://doi.org/10.1016/j.jeconbus.2012.11.002 [Citations: 27]
  21. The Persistence of Weapons: Global Evidence

    Asongu, Simplice A. | Uduji, Joseph I. | Okolo‐Obasi, Elda N.

    Politics & Policy, Vol. 48 (2020), Iss. 1 P.191

    https://doi.org/10.1111/polp.12341 [Citations: 17]
  22. The persistence of profits of banks in Africa

    Amidu, Mohammed | Harvey, Simon K.

    Review of Quantitative Finance and Accounting, Vol. 47 (2016), Iss. 1 P.83

    https://doi.org/10.1007/s11156-014-0495-8 [Citations: 12]
  23. Geographic location, ownership and profitability of Washington log trucking companies

    Nguyen, Diem | McCracken, Vicki | Casavant, Ken | Jessup, Eric

    Regional Science Policy & Practice, Vol. 3 (2011), Iss. 2 P.115

    https://doi.org/10.1111/j.1757-7802.2011.01033.x [Citations: 2]
  24. The persistence of global terrorism

    Asongu, Simplice A.

    Territory, Politics, Governance, Vol. 9 (2021), Iss. 1 P.111

    https://doi.org/10.1080/21622671.2019.1675532 [Citations: 2]

Abstract

The paper studies the persistence of profit and its determinants in emerging markets. We apply Markov chain analysis, dynamic panel GMM estimation, and quantile regression techniques to a panel of approximately 3,000 Ukrainian companies. The empirical results show a moderate level of profit persistence, as well as a relatively low speed of adjustment to the steady-state profit level, thus providing no support for the hypothesis that there is a lower persistence of profits in emerging markets due to more intense competition. Regarding the determinants of firm profit in an emerging market economy, the findings from alternative methods reveal that ownership structure and regional location of the firm have a significant impact.