What Do We Know About Variance in Accounting Profitability?

By Anita M. McGahan, Michael E. Porter. Management Sciences, 2002

406 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/e7fc46f6c2fba6fa0222730219468eaa98868208

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Citations in the corpus

Performance Configurations over Time: Implications for Growth– and Profit–Oriented Strategies (2009, background): “It is well established that firm performance along these dimensions varies according to both firm-specific and industry effects (McGahan & Porter, 1997, 2002; Rumelt, 1991).”
Guest editors\' introduction to the special issue: why is there a resource-based view? Toward a theory of competitive heterogeneity (2003, neutral): “…interfirm performance heterogeneity have become an increasing part of strategic management research (e.g., Brush and Bromiley, 1997; Brush, Bromiley, and Hendrickx, 1999; James, 1998; McGahan and Porter, 1997, 1999, 2002; Roquebert, Phillips, and Westfall, 1996; Rumelt, 1991; Schmalensee, 1985).”
New frontiers in international strategy (2004, background): “The literature generally concludes that all three levels have significant influences, although with varying views of the relative magnitudes of effects (Rumelt, 1991; Bowman and Helfat, 2001; McGahan and Porter, 2002; Hawawini et al., 2003).”
Business Model Design and the Performance of Entrepreneurial Firms (2007, neutral): “2003, McGahan and Porter 2002).”
The Corporate Headquarters in the Contemporary Corporation: Advancing a Multimarket Firm Perspective (2015, background): “The estimated corporate effect ranges from 4% (McGahan & Porter, 1997), to 2.7% for a “stable corporate effect” plus 4.6% for specific corporate management decisions (Adner & Helfat, 2003), to somewhere between 8.6% and 12% (McGahan & Porter, 2002).”
A new perspective on a fundamental debate: a multilevel approach to industry, corporate, and business unit effects (2006, methodology): “As McGahan and Porter (2002: 838) assert, the ‘strong covariance between industry and corporate-parent effects reported in McGahan and Porter (1997) suggests flaws in the assumptions required under both [VCA and ANOVA] approaches.’”
A (Blurry) Vision of the Future: How Leader Rhetoric about Ultimate Goals Influences Performance (2014, methodology): “ROA is a widely used measure of accounting profit in the strategy literature (McGahan & Porter, 2002).”
Determinants of profitability in European manufacturing and services: evidence from a dynamic panel model (2005, background): “McGahan and Porter (2002) show that the size of the estimated corporate effect is sensitive to sample selection criteria.”