Profit Persistence in Energy Industry: A Comparison Between Listed and Unlisted Companies
In this paper, we examine the profit persistency for energy industry around the world during the sample period between 2010 and 2016. We distinguish our dataset into two groups: the listed and unlisted companies to see whether these groups show a different pattern. Profit is measured using four different proxies; namely, return on asset, return on equity, return on capital employed and profit margin. The results of this study indicates that profits do not persist. where it means that competition in the energy industry is high. In addition, the competition is found to be higher in listed companies compare to unlisted companies.
Keywords: Profit Persistence, Listed and Unlisted Companies, Energy Industry
JEL Classifications: G30, L10, C22