Competition, Strategy, and Business Performance

摘要

Between 1981 and 1997, the financial-market premium on publicly traded U. S. corporations rose dramatically. At the same time, account- ing profitability dropped steadily. Figures 1 and 2 show the trends. In Figure 1, the financial-market premium is the ratio of the value of all Financial claims on firm (including stock and bonds) to the replacement value Of the firm's assets. In Figure 2, accounting profitability is the ratio of after-tax Income to the book value of assets.