The Speed Type Profit Model and the Quality Type Profit Model:An Empirical Explanation of the Heterogeneity of Enterprises’ Performance-质量院英文网
Position: Home > Papers > Content

The Speed Type Profit Model and the Quality Type Profit Model:An Empirical Explanation of the Heterogeneity of Enterprises’ Performance

April 7, 2016

Abstract: Faced with the same macro-economic downward pressure, many enterprises’ performance have got large impact, but some enterprises realized ‘buck up’ at the same time. The different inner quality ability based on the profit pattern is an important reason. By using the 2015 China manufacturing matched enterprise-employee survey (CEES) data, we set the enterprises whose in total factor productivity (TFP) growth (2013~2014) lower than or equal to the GDP growth rate as ‘speed profit model’, while the others whose TFP growth higher than the GDP as ‘quality profit model’. By building the comprehensive quality ability index that covers quality input and quality performance, we use IV, LIML and PSM to get the empirical explanation of different profit model enterprises coping with macro-economic downward pressure that based on their own quality ability. The result shows that the quality ability has significant positive causal effect on enterprises’ performance.


Key words: profit model, quality ability, cause effect