The Profitability Of The U.S. Food Supply Chain: Financial Indicators, Cross-Section And Time-Series Effects

Youshan Zhao; Carlos O. Trejo-Pech; Richard N. Weldon

doi:10.19030/jabr.v29i1.7552

The Profitability Of The U.S. Food Supply Chain: Financial Indicators, Cross-Section And Time-Series Effects

Journal

Journal of Applied Business Research (JABR)

ISSN

2157-8834

0892-7626

Date Issued

2012

Author(s)

Youshan Zhao

Carlos O. Trejo-Pech

Facultad de Ciencias Económicas y Empresariales - CampGDL

Richard N. Weldon

Type

text::journal::journal article

DOI

10.19030/jabr.v29i1.7552

URL

https://scripta.up.edu.mx/handle/20.500.12552/3580

Abstract

This study examines the U.S. agribusiness profitability from 1986 to 2008. By using regression analysis, we model accounting returns as a function of diverse financial indicators. To select the explanatory variables we further decompose the DuPont equation and perform some ad hoc transformations to model return on investment (rather than return on equity). In addition, using a two-way fixed effects model, we test within sectors and time effects of returns. We compare time effects with the three most recent economic recessions.