Employees, Firm Size and Profitability of U.S. Manufacturing Industries

Academic Article


  • These results are puzzling in the context of work by others who report that common stock returns are negatively correlated with size when size is measured by the market value of a company or with the work of those who argue that size is a proxy for risk. Interpreted against these works, our findings may mean that large firms earn excess returns, that small firms fail to earn their cost of capital, or that accounting returns simply behave differently than market returns with respect to firm size.
  • Authors

  • Becker-Blease, JR
  • Kaen, FR
  • Etebari, Ahmad
  • Baumann, H
  • Publication Date

  • 2010