Evidence on competitive advantage and superior stock market performance
Working paper
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http://hdl.handle.net/11250/164155Utgivelsesdato
2009-10Metadata
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Sammendrag
This article analyzes the value-relevance of industry-based and resource-based competitive advantage in a large sample of firms listed
on the Oslo Stock Exchange. We measure competitive advantage by a single variable and perform a new decomposition into its underlying sources. In 1986-2005, the industry-based and the resource-based
competitive advantage explain more than 20% of abnormal stock market returns, accumulated over five years. The resource-based advantage is almost four times more important than the industry-based
advantage. Differences in both the return and the risk capability of
firms’ net assets relative to their industry peers are significant parts of
the resource-based advantage, estimated at 60% and 40%, respectively.
Utgiver
Norwegian School of Economics and Business Administration. Department of Finance and Management ScienceSerie
Discussion paper2009:11