Allen, D. E.; Salim, H. M. - In: Applied Economics 37 (2005) 17, pp. 2009-2018
An approach recently developed by Fama and French (2000) is applied to the study of whether UK company profitability is mean-reverting. A sample of roughly 987 firms per year for a period from 1982-2000 is used, drawn from Datastream. In a simple partial adjustment model convergence towards the...