financial performance. Yet, contrary to conventional wisdom, recent research shows that industry-specific profitability … provide insights into when and why industry-specific profitability forecasting models are useful. We show that industry …-specific forecasts are significantly more accurate in predicting profitability for single-segment firms and, to some extent, for business …

As emerging economies integrate their markets with the rest of the world, competition driven changes in profitability … profitability distributions under such conditions using China’s WTO accession as a natural experiment, to carry out before and after … comparisons. Our results suggest that after WTO accession, the long run (ergodic) distribution of conditional profitability rates …