Firm and industry effects in accounting versus economic profit data

This article presents estimates of firm and industry fixed-effects on profit rates for large US corporations, using both Economic Value Added (EVA), the popular measure of profits produced by Stern Stewart and Company, as well as simple (unadjusted) accounting measures as the dependent variable. We find that the improvement in explanatory power of the fixed-effect model is substantially greater when using EVA than has been documented with alternative measures

The Persistence of Accounting versus Economic Profit

Drawing on Schumpeterian theory, this article presents estimates of a first-order autoregressive model of profit persistence for large US firms, using Economic Value Added (EVA), the popular measure of profits produced by Stern Stewart and Company, and simple (unadjusted) accounting measures from the Compustat database. We hypothesize about the differences we should expect to find between these two sets of estimates, and also provide a fresh normative assessment of the dynamic competitiveness of the US economy

The persistence of accounting versus economic profit

Drawing on Schumpeterian theory, this article presents estimates of a first-order autoregressive model of profit persistence for large US firms, using Economic Value Added (EVA), the popular measure of profits produced by Stern Stewart and Company, and simple (unadjusted) accounting measures from the Compustat database. We hypothesize about the differences we should expect to find between these two sets of estimates, and also provide a fresh normative assessment of the dynamic competitiveness of the US economy.dynamic competition efficiency persistence

Holographic Mutual Information for Singular Surfaces

We study corner contributions to holographic mutual information for entangling regions composed of a set of disjoint sectors of a single infinite circle in three-dimensional conformal field theories. In spite of the UV divergence of holographic mutual information, it exhibits a first order phase transition. We show that tripartite information is also divergent for disjoint sectors, which is in contrast with the well-known feature of tripartite information being finite even when entangling regions share boundaries. We also verify the locality of corner effects by studying mutual information between regions separated by a sharp annular region. Possible extensions to higher dimensions and hyperscaling violating geometries is also considered for disjoint sectors.Comment: 35 pages, 25 Figures, v2: presentation improved, v3: matches published version in JHE