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Banking regulation is essential for the efficient functioning of banking activities and the optimal allocation of financial resources. It also plays a critical role in ensuring financial stability and safeguarding depositors by preventing banks from taking excessive risks and ensuring they maintain adequate liquidity to meet their obligations. These measures contribute to the development of the banking sector and enable banks to finance economic growth. This study seeks to examine the transformations in banking regulation over recent decades and their impact on the performance of the banking sector, focusing on the United States as a case study. To achieve this objective, a descriptive method was employed. The study found that banking regulation in the United States has undergone significant transformations, shifting from liberalization to increased restrictions. The global financial crisis of 2008 prompted regulators to tighten their frameworks, which, while initially having a slight negative impact on profitability, ultimately had a significant positive effect on the resilience of banks. [ABSTRACT FROM AUTHOR]

The primary aim of this study is to assess the relationship between Green Supply Chain Management (GSCM) practices and the Return on Equity (ROE) of industrial sector firms in the United States and China during the implications of the US-China Trade War. Principal Component Analysis and Random Effects Regression Analysis are employed to empirically test the impact of four Green Supply Chain Management practices which are: Internal Environmental Management, Green Purchasing, Eco Design, and Customer Cooperation on ROE. A sample of 50 firms in the US and 50 firms in China is employed to test the hypothesized relationships. Findings suggest that there is a significant positive relationship between Eco Design and ROE in both countries. However, a significant negative relationship between Internal Environmental Management and ROE is concluded in China only. This research contributes to identifying out and classifying the reported practices of the Green Pillar in firms' Environmental, Social and Governance (ESG) reports under their related Green Supply Chain Management practices to provide a theoretical framework and facilitate future research. This paper proposes that policy makers, managers, and practitioners should accept sustainability as a strategic priority prior to implementing Green Supply Chain Management and suggests that firms should be confident of the long-term profitability of implementing Green Supply Chain Management practices. [ABSTRACT FROM AUTHOR]

The strategy-by-doing perspective argues that firms operating in highly dynamic environments can benefit from taking strategic actions in lieu of advance planning because such actions have learning effects that help the firm keep pace with changes in the environment. The implicit assumption is that strategy by doing is effective in dynamic environments but likely not in stable environments. This study challenges this notion and expands the purview of the strategy-by-doing perspective. We first argue that strategy by doing is generally an effective strategy due to the organizational learning it facilitates. We next discuss how environmental dynamism is multidimensional, encompassing both market and technological dynamism. The positive effects of strategy by doing on product-market performance are amplified in highly dynamic environments that feature high levels of both market and technological dynamism. We go on to argue that stable environments are also suitable for strategy by doing, where it can facilitate opportunity creation. However, strategy by doing may hinder performance in mixed environments where one form of dynamism is present and the other is not. Focusing on strategy by doing in the form of product changes, our analysis of 4,000 firms over a period of 20 years shows support for our arguments about environmental contingencies affecting the relationship between strategy by doing and performance. We discuss how these findings have implications for theory and practice. [ABSTRACT FROM AUTHOR]

Using data from the 2009–2020 Agricultural Resource Management Surveys, we compare the financial position and performance of African American farms to that of other U.S. farms. The results suggest that, relative to others, the average African American farm has lower total value of production, net cash farm income, government payments, assets, and debts. We obtained mixed results regarding financial performance, with African American farms having lower profitability, liquidity, and efficiency than others but higher solvency. To our knowledge, this study is the first to provide a contemporary overview of the status of African American farms using detailed, farm‐level financial data. [ABSTRACT FROM AUTHOR]

Purpose: Nonfamily farms are responsible for a disproportionate amount of US agriculture production. The importance of these operations to the volume of agriculture production in the United States has led researchers and policymakers to understand nonfamily farms as large commercial operations. This paper examines whether the distinction between family and nonfamily helps explain the financial outcomes of farm operations and households. Design/methodology/approach: We test for differences in financial outcomes of the household and operations of family and nonfamily farms using an Oaxaca-Blinder decomposition. We compare these results to a decomposition of other possible typologies. Findings: We present evidence that nonfamily farms are a heterogeneous group with a majority of small operations that are dominated by a small number of large operations. We discover that differences associated with the family-nonfamily distinction are largely explained by observable farm and operator characteristics that arise mechanically from the definition. However, we find suggestive evidence that family-nonfamily classification captures differences in economic behavior that lead to higher profitability measures to nonfamily farms. We find little evidence of any inherent structural differences between family and nonfamily farms that helps explain financial outcomes related to leverage or household finances. Practical implications: We conclude that including nonfamily farms in official statistics of farm households may provide a more comprehensive overview of the farm sector, as our results suggest that family and nonfamily farms do not have innate differences that help explain many of their financial outcomes. Originality/value: We incorporate previously unused data on nonfamily farm households and test the difference in mean financial outcomes between family and nonfamily farms. [ABSTRACT FROM AUTHOR]

Background: Despite high nutritional and economic value, alfalfa yield has not been improved in the United States. Soil moisture critically influences alfalfa's yield and quality, affecting its physiological processes, nutrient uptake, and stand growth. Additionally, the maturity stage at harvest can significantly impact both hay yield and quality. Thus, this study aimed to assess the effect of different soil moisture levels and harvesting times on forage yield, nutritive value, and the overall profitability of commercially cultivated alfalfa. Methods: Two conventional and three lower‐lignin alfalfa varieties were planted in a randomized complete block with split plot design under drought, rainfed, and irrigation conditions in 2020 in Manhattan, Kansas, USA. The dry matter yield (DMY) and forage nutritive value were evaluated at late bud, early flowering, and 7 days after early flowering stages, respectively. Results: DMY varied with production year, soil water availability, and growth stages, with drought conditions causing a decline in DMY of 5% to 38% in the second production year. Water conditions and maturity stages influenced crude protein (CP) and in vitro dry matter digestibility (IVDMD). Higher soil moisture and advancing maturity stages negatively impacted CP, IVDMD, and relative forage quality. The study revealed net profit margins of 62%, 64%, and 52% for drought‐prone, rainfed, and irrigated production, respectively. Conclusions: Harvest timing and irrigation practices were found to have substantial implications for forage yield and nutritive value of alfalfa. The yield‐quality trade‐off differed under drought and irrigation, with early harvesting leading to lower yields but higher protein content and digestibility. The study findings provide potential guidance for improving alfalfa hay yield, quality, and profitability. [ABSTRACT FROM AUTHOR]

This analysis seeks to demonstrate the theoretical and empirical salience of the 'law of the tendency of the rate of profit to fall' in relation to the concrete evolution of the US economy between 1950 and 2020. The theoretical-methodological approach adopted in this study is based on the work of Shane Mage and Murray E.G. Smith. This approach re-specifies the Marxian value categories and ratios for purposes of empirically operationalizing them as a theory of fundamental capitalist dynamics using national accounting data. Contributions include (1) the treatment of systemically necessary unproductive labour as a 'constant capital overhead cost' and (2) a method of managing 'fictitious profits' that are imputed into the national accounts and thereby enabling a more realistic estimate of 'social surplus value' (the numerator of the Marxian average rate of profit) in what has become an 'era of fictitious capital'. The empirical findings reveal a persistent rise in the organic composition of capital, as well as a rise in the rate of surplus value, accompanied by a long-term downward trend in the average rate of profit in the postwar US economy. [ABSTRACT FROM AUTHOR]

This study examines the relationship between market volatility conditions and the weekend effect on size and profitability anomalies in the U.S. stock market. The study uses the ICSS model to divide the sample into high- and low-volatility periods. Empirical results indicate that the weekend effect of size and profitability anomalies is significant in low-volatility states and insignificant in high-volatility conditions, and it is consistent across different measures of stock market volatility and subsamples. Additionally, we identify the intra-week patterns of log returns on the VIX index as the driver of the weekend effect on profitability and size anomalies. Our study not only extends the understanding of the weekend effect of long-short anomalies but also provides new evidence on the effectiveness of volatility management in factor investing. It also has important implications for investors, who should consider improving their factor investment strategies based on our results. [ABSTRACT FROM AUTHOR]

This article revisits the scholarly debate on the profitability of historical slavery. The article examines the case of the antebellum US South, using slave hire rates as a proxy for the net rent on investments in slavery. It employs empirical data and a more advanced methodological approach to the issue than in previous research. The results suggest that the profitability of slavery was much higher than what most previous research has shown, around 14–15 per cent per year on average after adjusting for mortality risk, but that the return also fluctuated over time. It was on average more profitable for Southern capital owners to invest in slaves than investing in many alternatives such as financial instruments or manufacturing activities in the US South, as long as slavery remained a legal institution. [ABSTRACT FROM AUTHOR]

Zcash is a proof-of-work (PoW) cryptocurrency that has gained attention due to its promise of enhanced user privacy. Notwithstanding, Zcash's thorough acceptance notably depends on how profitable its mining process can be. To tackle this issue, we propose an analytical model to compute the mining hashrate under solo mining to achieve a liquid revenue equal to the minimum wage in the United States. In the sequence, we then estimate how profitable Zcash solo mining is based on that computed mining hasrate. Our proposed model spans crucial parameters of the whole mining process. In the experiments, we compare Zcash with the popular Bitcoin and also present a competitive analysis encompassing the ten top cryptocurrencies by market capitalization. Final results highlight that: (i) Zcash owns a value of hmin which is about eight orders of magnitude smaller than that of Bitcoin in all investigated scenarios, which refer to the ten least and most expensive american states in terms of electricity tariff; and (ii) Zcash is the second best cryptocurrency for solo mining among the aforementioned ten cryptocurrencies, being the only one whose protocol implements the concept of zero-knowledge proofs. Within this context, our key contribution is to provide the scientific literature with valuable insights to formally pave the way to develop practical analytical models for PoW-cryptocurrency systems, which may be chiefly valuable regarding competitive analyses in general. [ABSTRACT FROM AUTHOR]

Introduction: There are long-standing differences in profitability between rural and urban hospitals. Prior to the COVID-19 Public Health Emergency (PHE), rural hospital profitability was decreasing, while urban hospital profitability was increasing. During the PHE, the Federal Government provided billions of dollars of support to hospitals. Given the prepandemic differences in trends in profitability, it is likely that the PHE funding had different effects on rural hospitals and urban hospitals., Methods: This study uses 2015-2023 Medicare cost report data from acute-care hospitals to assess the impact of COVID-19 PHE funding on hospital profitability. We employ descriptive Kruskal-Wallis and chi-square tests and an interrupted time series analysis to evaluate the effect of PHE funding on operating margins for a stratified sample of rural prospective payment system (PPS), urban PPS, and critical access hospitals (CAHs)., Results: We found that the PHE funding was associated with significant increases in operating margins, with rural PPS hospitals experiencing similar increases compared to urban PPS hospitals, and CAHs surpassing both rural and urban PPS hospitals in their margin values. However, if PHE funding had not been provided, our evidence suggests operating margins for all hospitals in 2022-2023 would have been below prepandemic levels., Discussion: This preliminary analysis portrays the importance of the PHE government funding in supporting hospitals during the pandemic, and shows declining profitability trends without the funds. Rural PPS hospitals fare the worst suggesting continued need for financial support if the trend continues., (© 2024 National Rural Health Association.)

Hiring new dermatology faculty at academic medical centers (AMCs) can be a difficult process. Academic dermatology departments, however, must have the financial freedom to nimbly respond to the needs of their community. To determine the downstream revenue and profitability produced by dermatology faculty, a retrospective review of charges and expenses downstream of professional services was performed to assess dermatology faculty and nurse practitioners from January 2019 to December 2020 at a single AMC in the southern United States. The downstream revenue per dermatology faculty was calculated using institutional data based on the number of services performed and the exact compensation per service. When this was not possible, the Medicare Allowable Charge was used to estimate the compensation for the service provided. Revenue was included from internal referrals to dermatopathology, Mohs surgery and repairs, chemistry and microbiology labs, radiology, and phototherapy. Profitability was calculated using institutional cost data to estimate the expense of each additional unit of services performed. The most valuable source of downstream income was dermatopathology services, which generated $85,395/provider in 2019 and $102,746/provider in 2020. Mohs surgery was also a significant source of downstream revenue contributing $92,715 in 2019 and $96,599 in 2020. Repairs after Mohs surgery internal referrals generated $30,036 in 2019 and $36,507 in 2020. The total contributions of chemistry and microbiology labs, radiology, and phototherapy were considerable but less impactful overall. The total downstream revenue calculated from these services for 2019 was $228,304/provider and $255,549 in 2020. The total downstream profitability for these services was calculated to be $112,597/provider in 2019 and $92,344/provider in 2020. In conclusion, faculty of academic dermatology departments produces a great deal more revenue and profitability for AMCs than the sum of their professional charges. [ABSTRACT FROM AUTHOR]

Motivated by the importance of industry volatility and the profitability of industry momentum strategy, this study investigates the relationship between realised volatility and industry momentum returns. The analysis uses daily return data for 48 US industries from July 1969 to June 2021 to calculate realised volatility and to gauge the raw return effect on short- and medium-horizon double-sort momentum-trading strategies. The findings show that past volatility positively relates to industry momentum and that this relationship is stronger after controlling for common risk factors (market, size, value, investment, and profitability). Decomposing the realised total volatility into idiosyncratic and systematic components, this study reveals that both decomposed components are positively related to industry momentum returns. The findings are robust to alternative measures of volatility. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this article is to investigate how land tenure correlates with measures of profitability among young farmers and ranchers in the United States. The authors hypothesize that young producers who own a larger proportion of their operation face different incentives between short- and long-run returns than young producers who primarily rent their land. The authors analyze whether these differing incentives result in observable differences in various measures of profitability. Design/methodology/approach: The authors use state-level data from the Agricultural Resource Management Survey (ARMS) from 2003 to 2018 to estimate fixed-effects panel models correlating land tenure with the value of farm production, expenditures on repairs and maintenance, net farm income, total operator household income from farming, rate of return on assets (ROA) and rate of return on equity (ROE). Findings: The authors find different correlations for crop farms and livestock farms, as well as different correlations for farms with the lowest and highest gross sales. For crop farms, renting land is associated with higher production, higher income, higher ROA and higher ROE. For livestock farms, renting land is associated with lower production. Originality/value: This study rigorously investigates the role of land tenure specifically among young farmers and ranchers in the United States. By better understanding how land ownership affects profitability among beginning farmers and ranchers, policymakers will be able to better target public resources to support the next generation of producers. [ABSTRACT FROM AUTHOR]

Plastic contamination in US lint bales has increased with the adoption of new cotton harvesters that form cylindrical or round modules on the machine. It is of significant interest to the US cotton industry to reduce this contamination to preserve grower profitability and the reputation of the US as a reliable source of clean cotton fiber. The objective of this work is to describe the design and operation of a system for use on cotton gin module feeders that provides monitoring of plastic accumulation on the dispersing cylinders and video data to help document the module wrap condition and unloading/unwrapping procedures that may have caused the potential contamination event on the dispersing cylinders. In 2020, an integrated plastic contamination monitoring system was installed on module feeders at two commercial cotton gins in Texas. The system is comprised of sub-systems that provide images of plastic accumulation on the dispersing cylinders, a log of the processing sequence for round modules, video data of the unloading/unwrapping process for each module and a software program that integrates the data from the two sub-systems. The system was developed to operate on one computer, store the data in a common location, and simplify the process of extracting module specific data for a given event when plastic accumulates on the module feeder dispersing cylinders. The data provided by the system can be useful to manufacturers in comparing performance among module wrap products as well as to gin managers in training gin employees on module handling procedures to mitigate plastic contamination and improve worker safety. [ABSTRACT FROM AUTHOR]

We investigate whether U.S. multinational corporations shift income overseas to the point of recording domestic pretax earnings around zero. We label firms with near-zero domestic earnings "Small" firms, and present evidence that Small captures targeted income shifting that minimizes worldwide and domestic current taxes. Because shifting essentially all income out of the U.S. represents a very aggressive form of international tax planning, Small firms represent an important margin for understanding the income shifting of U.S. MNCs. We find that firms facing tax incentives to shift income and firms with greater income shifting ability are more likely to report near-zero domestic earnings. In addition, investors value the earnings of Small firms higher than that of other U.S. multinational firms, conditional on overall profitability, suggesting that, on average, investors hold a positive view of income shifting to the point of recording domestic earnings around zero. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: F23; H25; H26; M40. [ABSTRACT FROM AUTHOR]

We use religious background as a proxy for local risk‐taking attitudes and investigate whether geographical variation in religion affects corporate environmental responsibility (CER) with regards to corporate cash policies and profitability. We conjecture that the presence of environmentally conscious firms would be higher in areas with more Catholics relative to Protestants. Study data comprises of the largest publicly traded U.S.‐listed firms of Newsweek's green rankings of 2015–2016. We use green scores and the concentration of Catholic to Protestant population ratio as proxies for CER and religiosity, respectively. We provide robust evidence that corporate environmental practices attenuate the demand for precautionary cash reserves to protect firms from unforeseeable risks. Furthermore, environmentally conscious firms located in high risk‐taking areas gain financial stability and improve profitability, strengthening their CER. The findings provide contributions to risk management literature and document the importance of firms' efforts to harmonize social behavior for sustainable financial policies. [ABSTRACT FROM AUTHOR]

We demonstrate that personal political preferences of corporate managers influence corporate policies. Specifically, Republican managers who are likely to have conservative personal ideologies adopt and maintain more conservative corporate policies. Those firms have lower levels of corporate debt, lower capital and research and development (R&D) expenditures, less risky investments, but higher profitability. Using the 9/11 terrorist attacks and Sept. 2008 Lehman Brothers bankruptcy as natural experiments, we demonstrate that investment policies of Republican managers became more conservative following these exogenous uncertainty-increasing events. Furthermore, around chief executive officer (CEO) turnovers, including CEO deaths, firm leverage policy becomes more conservative when managerial conservatism increases. [ABSTRACT FROM PUBLISHER]

This paper investigates the impact of customer compatibility—the degree of fit between customers' needs and the capabilities of the operations serving them—on customer experiences and firm performance. We use variance decomposition analysis to quantify the relative importance of customer, employee, process, location, and market-level effects on customer satisfaction. In our models, which explain roughly a quarter of the aggregate variance, differences among customers account for 96%–97% of the explainable portion. Further analysis of interaction-level data from banking and quick-service restaurants reveals that customers report relatively consistent satisfaction across transactions with particular firms but that some customers are habitually more satisfied than others. A second set of empirical studies provides evidence that these customer-level differences are explained in part by customer compatibility. Customers whose needs, proxied by differences in demographics and product choices, diverge more starkly from those of their bank's average customers report significantly lower levels of satisfaction. Consistently, banks that serve customer bases with more dispersed needs receive lower satisfaction scores than banks serving customer bases with less dispersed needs. Finally, a longitudinal analysis of the deposit and loan growth of all federally insured banks in the United States from 2006 to 2017 reveals that customer compatibility affects a firm's financial performance. Branches with more divergent customers grow more slowly than branches with less divergent customers. Institutions serving customer bases with more dispersed needs have branches that exhibit slower growth than those of institutions serving customer bases with less dispersed needs. This paper was accepted by Vishal Gaur, operations management. [ABSTRACT FROM AUTHOR]

This study compares profitability and risk of conventional and cage-free egg production in the United States. Evaluating cage-free production is particularly relevant given ongoing consumer driven changes and new cage-free legislation. Results show that while the Modified Internal Rate of Return (MIRR) for conventional production is above an estimated industry opportunity cost of capital, cage-free production's MIRR does not fully satisfy investors' expectations. The MIRR of cage-free investment, between 5.6% (deterministic model) and 8.0% (stochastic) per 15-month flock, is below the 9.4% opportunity cost of capital. In addition, the simulations show that there is a 90% probability of conventional production's MIRR falling between 18.5 and 20.3% per 15-month flock, and cage-free egg production's MIRR ranging from 6.8 to 9.4%. In order for cage-free to be as equally profitable as conventional production, cage-free egg prices at the farmer gate should be 74% over conventional egg prices. Such high cage-free egg prices are highly unlikely to occur given recent cage-free price premia and consumer willingness to pay estimates from recent research. This study provides a framework egg producers can use to evaluate the potential effects of changes in their portfolio of products (i.e. conventional and cage-free mix) as they accommodate production schedules in this evolving industry. [ABSTRACT FROM AUTHOR]

During the War of 1812, American privateers captured more than 1,000 British merchant ships as "prizes." Because privateers were privately owned, and sought profit, not glory, in combat, an obvious question is whether they made money. Perhaps surprisingly, determining the profitability of privateers is difficult. Even early in the war, privateer owners petitioned Congress to make privateering profitable by lowering customs duties. Their complaints led two treasury secretaries to use economic theory to try to understand the economic incentives for privateering. Twice, Congress made decisions guided by competing theories, ultimately lowering customs duties, yet apparently the subsidy did not increase the number of prizes brought into U.S. ports. [ABSTRACT FROM AUTHOR]

We explore the impact of supervision on the riskiness, profitability, and growth of U.S. banks. Using data on supervisors' time use, we demonstrate that the top‐ranked banks by size within a supervisory district receive more attention from supervisors, even after controlling for size, complexity, risk, and other characteristics. Using a matched sample approach, we find that these top‐ranked banks that receive more supervisory attention hold less risky loan portfolios, are less volatile, and are less sensitive to industry downturns, but do not have lower growth or profitability. Our results underscore the distinct role of supervision in mitigating banking sector risk. [ABSTRACT FROM AUTHOR]

We investigate the effect of using an optimized exit rule on pairs trading. For every asset pair, we optimize the positions so that resulting intraday portfolio value is best fitted to an Ornstein–Uhlenbeck (OU) process through maximum likelihood estimation. Using various asset pairs, we examine the risks and returns of pairs trading strategies with and without an optimize exit rule. We provide empirical evidence that using an optimized exit rule improves the profitability of the trades and reduces turnovers. [ABSTRACT FROM AUTHOR]

Cross‐country studies document a negative relation between corporate governance and cash holdings. In contrast, this relation is found to be positive in the United States. In this paper, we examine the case of Japanese firms. Using institutional ownership and cross‐shareholdings as the main governance variables, we show that better governance is associated with higher cash balances as in the United States. The reason is that better‐governed firms make better investment decisions. Their investments are not driven by excess liquidity and result in higher profitability and higher firm valuation. Overall, our findings indicate that management profligacy is a bigger concern to shareholders than management propensity to hoard cash because of risk aversion. [ABSTRACT FROM AUTHOR]

Importance: Understanding the profitability of pharmaceutical companies is essential to formulating evidence-based policies to reduce drug costs while maintaining the industry's ability to innovate and provide essential medicines.Objective: To compare the profitability of large pharmaceutical companies with other large companies.Design, Setting, and Participants: This cross-sectional study compared the annual profits of 35 large pharmaceutical companies with 357 companies in the S&P 500 Index from 2000 to 2018 using information from annual financial reports. A statistically significant differential profit margin favoring pharmaceutical companies was evidence of greater profitability.Exposures: Large pharmaceutical vs nonpharmaceutical companies.Main Outcomes and Measures: The main outcomes were revenue and 3 measures of annual profit: gross profit (revenue minus the cost of goods sold); earnings before interest, taxes, depreciation, and amortization (EBITDA; pretax profit from core business activities); and net income, also referred to as earnings (difference between all revenues and expenses). Profit measures are described as cumulative for all companies from 2000 to 2018 or annual profit as a fraction of revenue (margin).Results: From 2000 to 2018, 35 large pharmaceutical companies reported cumulative revenue of $11.5 trillion, gross profit of $8.6 trillion, EBITDA of $3.7 trillion, and net income of $1.9 trillion, while 357 S&P 500 companies reported cumulative revenue of $130.5 trillion, gross profit of $42.1 trillion, EBITDA of $22.8 trillion, and net income of $9.4 trillion. In bivariable regression models, the median annual profit margins of pharmaceutical companies were significantly greater than those of S&P 500 companies (gross profit margin: 76.5% vs 37.4%; difference, 39.1% [95% CI, 32.5%-45.7%]; P < .001; EBITDA margin: 29.4% vs 19%; difference, 10.4% [95% CI, 7.1%-13.7%]; P < .001; net income margin: 13.8% vs 7.7%; difference, 6.1% [95% CI, 2.5%-9.7%]; P < .001). The differences were smaller in regression models controlling for company size and year and when considering only companies reporting research and development expense (gross profit margin: difference, 30.5% [95% CI, 20.9%-40.1%]; P < .001; EBITDA margin: difference, 9.2% [95% CI, 5.2%-13.2%]; P < .001; net income margin: difference, 3.6% [95% CI, 0.011%-7.2%]; P = .05).Conclusions and Relevance: From 2000 to 2018, the profitability of large pharmaceutical companies was significantly greater than other large, public companies, but the difference was less pronounced when considering company size, year, or research and development expense. Data on the profitability of large pharmaceutical companies may be relevant to formulating evidence-based policies to make medicines more affordable. [ABSTRACT FROM AUTHOR]

The author proposes a strategic model of entry that allows for positive and negative spillovers among firms. The model is applied to a novel data set containing information about the store configurations of all U.S. regional shopping centers and is used to quantify the magnitude of interstore spillovers. The author addresses the estimation difficulties that arise due to the presence of multiple equilibria by formulating the entry game as a mathematical problem with equilibrium constraints (MPEC). Although this study constitutes the first attempt to use this direct optimization approach to address a specific empirical problem, the method can be used in a wide range of structural estimation problems. The empirical results support the agglomeration and clustering theories that predict that firms may have incentives to colocate despite potential business stealing effects. The author shows that the firms' negative and positive strategic effects help predict both how many firms can operate profitably in a given market and the firm-type configurations. The relative magnitude of such effects varies substantially across store types. [ABSTRACT FROM AUTHOR]

Do unions really impede manufacturers' output flexibility? If so, in what ways? The authors propose a methodology for qualifying George Stigler's concept of output flexibility, and for decomposing the effects of unionization on average cost differences between union and non-union plants. Using a recently compiled data set on U.S. three-digit manufacturing industries from 1973 to 1996, they adapt this methodology to simulate the effects of unionization on flexibility and average costs for average-size plants. Simulation results indicate that higher unionization was associated with higher average costs and lower flexibility than low unionization. Higher average costs appear to have been primarily due to higher fixed costs, such as higher benefits. [ABSTRACT FROM AUTHOR]

The impact of customer relationship management (CRM) implementation on firm performance is an issue of considerable debate. This study examines the impact of CRM implementation on two metrics of firm performance—operational (cost) efficiency and the ability of firms to generate profits (profit efficiency)—using a large sample of U.S. commercial banks. The authors use stochastic frontier analysis to estimate cost and profit efficiencies and employ hierarchical linear modeling to assess the effect of CRM implementation on cost and profit efficiencies. They find that CRM implementation is associated with a decline in cost efficiency but an increase in profit efficiency. A firm-level factor, CRM commitment, reduces the negative effect of CRM implementation on cost efficiency. The authors also find that two adoption-related factors, time of adoption and time since adoption, influence the relationship between CRM implementation and cost and profit efficiencies. Early adopters benefit less from CRM implementation than late adopters. However, time since adoption improves the performance of firms that implement CRM. By demonstrating the different ways CRM implementation influences cost and profit measures, the study provides valuable insights to CRM researchers and managers. [ABSTRACT FROM AUTHOR]

The authors develop a general model of local-level bargaining in the multi-plant firm. According to this model, when the parent firm has the ability to allocate production differentially across plants, the local union may be motivated to work with local management to reduce production costs and increase profitability, in order to increase plant employment or minimize reductions in plant employment. A case study using data from General Motors' Lansing Grand River Assembly (LGRA) and United Auto Workers Local 652, collected in part from interviews conducted in 2003--2008, shows how the parties established a joint responsibility system of collective bargaining that encouraged the union to reduce production costs and increase profitability by accepting responsibilities traditionally borne by management. The authors also demonstrate that General Motors, consistent with budget, capacity, and political constraints, invested in LGRA and assigned new product to LGRA, thus supporting the hypothesized incentive structure. [ABSTRACT FROM AUTHOR]

This study uses structural equation modeling to investigate the association between extent of ABC use and quality, cost, and cycle-time improvements; the relations among quality, cost, and cycle-time improvements; and the association of quality, cost, and cycle-time improvements with profitability at the manufacturing plant level. Overall, the results of the structural analyses support the theoretical model, indicating that (a) extent of ABC use has a significant positive association on cost improvement, quality improvement, and cycle-time improvement; (b) quality improvement is significantly associated with both cost improvement and profitability; (c) cost improvement is significantly associated with profitability; (d) quality improvement is significantly associated with cycle-time improvement; and (e) cycle-time improvement is significantly associated with both cost improvement and profitability. However, the direct association between extern of ABC use and profitability is not significant. Rather, the association is through cost improvement, quality improvement, and cycle-lime improvement acting as intervening variables. [ABSTRACT FROM AUTHOR]

This paper explores the effects of partner substitutability and alliance network structure on organizational profitability. Although firms are expected to benefit from the exclusive resources brought in by resource-rich, nonsubstitutable alliance partners, the costs of allying with such partners could offset those benefits. Analyzing alliances in the U.S. telecommunications industry, we show that a firm facing nonsubstitutable partners was better off when its alliances were embedded in third-party ties, which allowed the firm to gain indirect leverage on such partners. [ABSTRACT FROM AUTHOR]

This paper examines long-term block ownership by corporations and performance changes in firms with corporate block owners. We also examine potential reasons for corporate ownership including benefits in product market relationships, alleviation of financing constraints, and board monitoring by corporate owners. We find the largest significant increases in targets' stock prices, investment, and operating profitability when ownership is combined with alliances, joint ventures, and other product market relationships between purchasing and target firms, especially in industries with high research and development. Our findings are consistent with the conclusion that block ownership by corporations has significant benefits in product market relationships. [ABSTRACT FROM AUTHOR]

Scholars have advanced various theories to explain the common failure of market leaders in the face of revolutionary technological change. The history of NCR Corporation provides an instructive exception to that general pattern. This paper examines how NCR addressed the introduction of electronics to the field of business equipment and the advent of digital computers to widespread use. It describes NCR `s entry into the computer industry in the 1950s and its commitment to evolutionary adaptation of its core products. It shows how persistence in old modes of practice led eventually to a crisis, which was resolved favorably when new management and fundamental organizational transformations reversed adverse trends and restored robust profitability. While established academic theories can help to explain aspects of the story, no single theoretical perspective is sufficient to explain the path of NCR's behavior. NCR survived, we conclude, because new leadership provided the impetus to actualize latent dynamic capabilities. [ABSTRACT FROM AUTHOR]

What drove business profitability during the 1980s and early 1990s? Management consultants, business academics, investment analysts, and the business press have all offered managers a range of theories. However, managers have not had access to much data about aggregate trends and broad influences on business profitability over time. With new reporting requirements in place in the United States around 1980, the problem was partly solved. This article uses the new data to categorize the performance of U.S. businesses over the past two decades. The study begins by grouping businesses based on the trajectory in their accounting profitability. If offers information on the average size, growth, financial-market premium, and sectoral affiliation of businesses within each of the groups. Finally, this article describes the broad strategic issues that arise for a subset of the businesses within each group. The result is a series of suggestions about shifts in the strategic issues that face businesses across the economy. [ABSTRACT FROM AUTHOR]

Organic agriculture promotes sustainability compared to conventional agriculture. However, the multifunctional sustainability benefits of organic farms might be mediated by landscape context. Assessing how landscape context affects sustainability may aid in targeting organic production to landscapes that promote high biodiversity, crop yields, and profitability. We addressed this using a meta-analysis spanning 60 crop types on six continents that assessed whether landscape context affected biodiversity, yield, and profitability of organic vs. conventional agroecosystems. We considered landscape metrics reflecting landscape composition (percent cropland), compositional heterogeneity (number and diversity of cover types), and configurational heterogeneity (spatial arrangement of cover types) across our study systems. Organic sites had greater biodiversity (34%) and profits (50%) than conventional sites, despite lower yields (18%). Biodiversity gains increased as average crop field size in the landscape increased, suggesting organic farms provide a "refuge" in intensive landscapes. In contrast, as crop field size increased, yield gaps between organic and conventional farms increased and profitability benefits of organic farming decreased. Profitability of organic systems, which we were only able to measure for studies conducted in the United States, varied across landscapes in conjunction with production costs and price premiums, suggesting socioeconomic factors mediated profitability. Our results show biodiversity benefits of organic farming respond differently to landscape context compared to yield and profitability benefits, suggesting these sustainability metrics are decoupled. More broadly, our results show that the ecological, but not the economic, sustainability benefits of organic agriculture are most pronounced in more intensive agricultural landscapes. [ABSTRACT FROM AUTHOR]

Effective use of social media by hospitals has the potential to improve hospitals' financial performance by facilitating customer service and providing hospitals with a low-cost marketing platform. This cross-sectional study explored the relationship between hospital Facebook engagement and patient revenue in a simple random sample of United States short-term acute care hospitals. There was a positive relationship between Facebook engagement and hospital patient revenue for rural hospitals, but not for urban hospitals. Additional research is needed to identify the mechanisms through which hospitals' social media presence influences consumer health purchasing behavior and profitability. [ABSTRACT FROM AUTHOR]

We examine whether customer-base concentration has a differential impact on profitability for firms contracting with major government customers versus firms contracting with major corporate customers. We document that firm profitability increases with the concentration of major government customers, but decreases with the concentration of major corporate customers. We attribute the contrasting results to the differential impact of major government and corporate customers on demand uncertainty. Specifically, firms contracting with major government customers face lower demand uncertainty that enables them to realize more efficiency gains from customer-specific investments, whereas firms contracting with major corporate customers are exposed to higher demand uncertainty that reduces the efficiency of customer-specific investments. Overall, our study suggests that major government customers are unique and important in the composition of customer base, and they impact firm outcomes in a significantly different way than major corporate customers. JEL Classifications: M41; L25; G14; H57. [ABSTRACT FROM AUTHOR]

• Median annual income for adult vaccinations was $90,343 for family medicine (FM) • Median annual income for adult vaccinations was $28,267 for internal medicine (IM) • Median annual income for adult vaccinations was $2,886 for OB-GYN. • Annual income was positive in 4 of 4 FM, 3 of 4 IM, and 3 of 5 OB-GYN practices. Vaccination coverage among adults remains low in the United States. Understanding the barriers to provision of adult vaccination is an important step to increasing vaccination coverage and improving public health. To better understand financial factors that may affect practice decisions about adult vaccination, this study sought to understand how costs compared with payments for adult vaccinations in a sample of U.S. physician practices. We recruited a convenience sample of 19 practices in nine states in 2017. We conducted a time-motion study to assess the time costs of vaccination activities and conducted a survey of practice managers to assess materials, management, and dose costs and payments for vaccination. We received complete cost and payment data from 13 of the 19 practices. We calculated annual income from vaccination services by comparing estimated costs with payments received for vaccine doses and vaccine administration. Median annual total income from vaccination services was $90,343 at family medicine practices (range: $3968–$249,628), $28,267 at internal medicine practices (−$32,659–$141,034) and $2886 at obstetrics and gynecology practices (−$73,451–$23,820). Adult vaccination was profitable at the median of our sample, but there is wide variation in profitability due to differences in costs and payment rates across practices. This study provides evidence on the financial viability of adult vaccination and supports actions for improving financial viability. These results can help inform practices' decisions whether to provide adult vaccines and contribute to keeping adults up-to-date with the recommended vaccination schedule. [ABSTRACT FROM AUTHOR]

Agricultural landscapes are important for natural resource conservation, but present numerous obstacles associated with intensive agricultural production. Chief among these challenges is the competing economics outcomes of conservation and crop production. Understanding these outcomes requires quantifying economics of crop production and conservation enrollment. Precision agriculture technology provides a mechanism to address these needs by using advanced technology to quantify spatially explicit profitability in agricultural fields. Precision agriculture's application to conservation planning represents a growing field of research. I present a brief overview of precision agriculture technology and its application in natural resource conservation. I discuss the role precision agriculture can play in United States conservation policy, highlight hindrances to adopting this technology, and provide recommendations for future application. I outline a new approach of targeted conservation delivery that focuses on return on investment to agricultural producers and discuss the role of precision agriculture in this approach. Increased adoption and application of this technology in natural resource conservation will require substantial investment from state wildlife agencies, nongovernmental organizations, farm managers, rural banks, and agricultural companies. Precision agriculture represents the next paradigm shift in natural resource conservation where spatially explicit conservation decisions are made that optimize conservation and profitability to produce environmentally resilient, multifunctional agricultural landscapes. © 2019 The Wildlife Society. Precision agriculture represents the next paradigm shift in natural resource conservation where spatially explicit conservation decisions are made that optimize conservation and profitability to produce environmentally resilient, multifunctional agricultural landscapes. The ability of the wildlife conservation community to capitalize on this emerging technology will depend on leadership from natural resource agencies, nongovernment organizations, rural banks, and private agricultural companies to invest and conceptualize both the conservation and economic potential to this technology. [ABSTRACT FROM AUTHOR]

This paper formulates and examines a new type of bivariate time series trading strategy based on signals generated from cross-country quantiles of return distributions. We conduct rolling quantile trading strategies separately in the U.S. and Chinese futures markets for soybeans, wheat, corn and sugar over very short (daily, intraday and overnight) holding periods. Overall, we find that these practical strategies outperform various benchmarks and there is a large profit potential when trades follow quantile-based signals rather than focusing on the median only. The results highlight the value of cross-country trading strategies and the harnessing of information from different parts of the return distributions which have so far been neglected. [ABSTRACT FROM AUTHOR]

This study explores the impact of recent federal regulations, such as Comprehensive Safety Analysis (CSA) 2010, Hours of Service Changes, Environmental Regulations, and electronic logbooks on motor carrier profitability. Quarterly data from 2004 -- 2015 from U.S. publicly traded motor carriers is used to estimate the temporal trends on various financial ratios after controlling for general economic and carrier specific characteristics. Results of the analysis reveal that motor carrier profitability was declining between 2004 and 2009 but has been improving since that time. [ABSTRACT FROM AUTHOR]

This research evaluated the profitability and nitrogen (N) efficiency of real time on-the-go optical sensing measurements (OPM) for variable-rate (VRT) N management for cotton. Two forms of OPM-based VRT N management and the existing farmer practice (FP) were used to determine N rates applied to cotton on 21 farm fields in the lower Mississippi River Basin states of Louisiana, Mississippi, Missouri and Tennessee, USA. A modified version of the Schabenberger and Pierce on-farm experimentation model was used to evaluate VRT N management and landscape, soil and weather factors on lint yields, N rates, N efficiency (lint yield divided by N rate) and net returns. Field level mean lint yields were not different between VRT and FP. VRT decreased N rates applied on four fields and increased N rates applied on four other fields. However, landscape, soil and weather attributes specific to fields influenced VRT N rates. VRT N rates were similar to FP N rates on the other fields in the study. N efficiency was not improved with VRT N management. N rates were not low enough to increase N efficiency. Changes in lint yields and N rates due to VRT coupled with USDA NRCS Environmental Quality Incentive Program cost-share payments were not sufficient to produce higher net returns relative to FP N management at the field level. In this multi-site, multi-year study, yields and net returns from VRT were not different from FPs which did not utilize variable rate N management. [ABSTRACT FROM AUTHOR]

This paper investigates the association between environmental, social, and governance (ESG) disclosure and company profitability, as measured by return on assets (ROA). We first assess a method to indexing the ESG score of a large sample of U.S. listed companies based on MSCI ESG KLD STATS data from 2000 to 2016. The statistical model is run on 17,358 observations and studies the association of ROA and the three different dimensions of ESG score. Significant differences between industrial firms and financial intermediaries emerge. We find a significant and positive association between ESG and that the environmental awareness in banks is strongly related to profitability, providing implications for policy makers and policy takers. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to identify financial stress and the causes of financial stress for agricultural cooperatives and provide management recommendations to stakeholders including cooperatives' managers, boards of directors and lenders.Design/methodology/approach This research used the geometric mean of the real rate of return on equity to identify financially stressed agricultural cooperatives. The real rate of return on equity allows the allocation of total financial stress among the return on assets, leverage and interest rate issues.Findings This study found that financially non-stressed agricultural cooperatives had a higher rate of return on equity and rate of return on assets, but lower leverage ratios and interest rates than stressed agricultural cooperatives. Further, non-stressed cooperatives had higher total assets and sales compared to stressed cooperatives. This suggests that smaller cooperatives are more likely to face financial stress than larger cooperatives. The decomposition of the financial problem showed that a substantial percentage of financial stress was correlated with a low return on assets or profitability. A smaller percentage of financial stress was due to financing decisions.Originality/value This study provides value by measuring the impact of profitability, leverage and interest rate on the financial performance of agricultural cooperatives. Results showed that a substantial proportion of financial stress was associated with a low return on assets. This indicates that profitability is a problem for agricultural cooperatives. This study also examines profitability during a period of volatile returns in production agriculture. [ABSTRACT FROM AUTHOR]

This paper sets up a two‐country model in which there is one domestic manufacturer authorising its product to a distributor in the foreign country. The distributor can sell the product not only to its own market (i.e., the foreign market) but also back to the domestic market. The latter is called parallel trade (PT). The paper investigates the effects of PT on the profits of the manufacturer and social welfare if the domestic market structure is endogenously determined. It is found that PT should be encouraged rather than banned as it increases not only the profits of the manufacturer but also the welfare of both the domestic and the foreign countries. [ABSTRACT FROM AUTHOR]