engleski

Alternative profitability measures and their impact on profit-concentration relationship

Many different authors have tried to establish relationship between the enterprise performance (usually presented with different profitability indicators) and the industry structure (usually presented by concentration ratios). Although majority of studies found this relationship to be positive, some studies identified negative profit-concentration relationship. Among many reasons for controversial findings, an additional possible explanation may lie in the usage of different profitability measures. Due to that, some authors have tested the importance of selected profitability measures on profit-concentration relationship. Researches of this kind in the Croatian manufacturing industry are almost inexistent. Therefore in this paper we have tried to find out which one of seven different measures of profitability is better in explaining profit-concentration relationship.

structure-performance model; profitability; concentration ratios; large enterprises

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