The Surrey Business School, University of Surrey, Guildford, Surrey GU2 7XH, United Kingdom
Abstract:
In this paper we study the profitability of car manufacturers in relation to industry-wide profitability targets such as industry averages. Specifically we are interested in whether firms adjust their profitability in the direction of these targets, whether it is possible to detect any such change, and, if so, what the precise nature is of these changes.