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Is Performance driven by industry-or firm-specific factors? a response to Hawawini, Subramanian, and Verdin

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Hawawini, Subramanian, and Verdin (2003) examined the relative impact of industry- vs. firm-level factors shaping firm performance. They demonstrated that variance in firm performance attributable to industry-level factors increases, while variance attributable to firm-level factors decreases when exceptionally higher- and lower-performing outlier firms in each industry are excluded. They concluded that previous research underestimated the relative impact of industry-level factors for average firms that make up the bulk of an industry. We take issue with their methods used to identify and exclude outliers as well as their conclusions drawn from such analyses. Rather than excluding true outlier firms, we argue that they incorporated an artificial restriction of within-industry sample variance that almost deterministically led to lower firm and higher industry variance component estimates. We demonstrate this point with a comparable sample of data to which we apply progressively greater restrictions on within-industry sample variance leading to similar results. Finally, we show that exclusion of firms from a data sample based on commonly understood standards of outlier identification leads to little .Printed Journal

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Ketersediaan

Call Number	Location	Available
	PSB lt.dasar - Pascasarjana	1

Penerbit	John Wiley & Sons.,
Edisi	-
Subjek	Performance evaluation Research methodology studies
ISBN/ISSN	1432095
Klasifikasi	-
Deskripsi Fisik	-
Info Detail Spesifik	-
Other Version/Related	Tidak tersedia versi lain
Lampiran Berkas	Tidak Ada Data