Persistence of firm‐level profitability in the European dairy processing industry
基于自回归模型和动态面板估计，分析了欧洲五国590家乳品加工企业的利润持续性，发现合作社利润导向弱，行业竞争激烈导致利润持续性低。
Abstract Based on autoregressive (AR) models and Arellano‐Bond dynamic panel estimation, this article analyses profit persistence in the European dairy processing industry. The sample comprises 590 dairy processors from the following five countries: Belgium, France, Italy, Spain, and the United Kingdom. The AR models indicate that cooperatives which account for around 20% of all firms in the dairy processing sector are not primarily profit oriented. In addition, the results point toward a high level of competition as profit persistence is rather low even if cooperatives are excluded. The panel model reveals that short‐ as well as long‐run profit persistence is influenced by firm and industry characteristics.