Business Case Studies & Business Publications

Note on the Impact of Industry and Firm ...

Bourgeois, L. J. I...

Technical Note

Note on the Impact of Industry and Firm Factors on Firm Profitability: An Analysis of the Fortune 1000 from 1996-2004

Bourgeois, L. J. III; Ganz, Adam; Gonce, Andrew; Nedell, Keith

S-0152 | Published November 25, 2008 | 17 pages Technical Note

Collection: Darden School of Business

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Building on previous research, this note examines the results of a study of firms on the Fortune 1000 list from 1996 to 2004. The note brings those studies up to date by introducing more recent industry return data and extends the analysis to include a discussion of how profitability within and across industries may and does vary over time, as well as the implications of such a phenomenon. The note also details the impact of competition?specifically, the level of a given industry's concentration among its top firms?on profitability. Profitability in the study uses three metrics: return on equity (ROE), return on sales (ROS), and return on assets (ROA) to compare the firms on the Fortune 1000 list to uncover key findings.