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The structure of profitability around the world

Tarun Khanna, Jan W. Rivkin, Harvard Business School. Division of Research

Analysis of data from from advanced economies and theories from industrial economics have predisposed many strategists towards a belief that patterns of profitability are structurally similar around the world. We question the universality of such patterns. With time-series data on publicly traded firms in 43 nations, we compare profitability patterns across countries in two ways.

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