Suchergebnisse

We extend standard methodology for multigroup mean and covariance structure (MACS) analysis to the case where assessment of across-group variation of model parameters is the focus of the study and the data deviate from standard assumptions. The proposed methods are applied to analyze an accounting profitability database covering more than 100,000 firms in the 15 European Union (EU) countries in the period 1999 to 2003. A multivariate model with permanent and dynamic latent components of profitability is used to assess across-country variation of firm level profitability and persistence. We show that there are substantial differences among these countries, despite the partial integration of their economies. Estimation of supplementary parameters are proposed as a way to characterize persistence in each country, as well as across-group variation of model parameters. This methodology is more widely applicable in international organizational research. ; The authors disclosed receipt of the following financial support for the research and/or authorship of this article: Partially supported by grants SEJ2006–13537 and PR2007–0221 from the Spanish Ministry of Science and Technology and by grants GV05/125 and BEST/2008/038 from the Generalitat Valenciana (Spain).