Journal article

Rank Friction: An Ordinal Approach to Persistent Profitability

Abstract:: We present an ordinal method for studying persistence in firm profitability. The method is based on the degree of stability in a ranked performance distribution over time. The method gives a numerical index of rank friction (Rf) that can be applied to any ranked data over any period of time. Rf is nonparametric and can be used to test theoretical assumptions in strategic management. We illustrate the method in an empirical study of 40 years of profit data in 12 industries.

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APA Style

Powell, T., & Reinhardt, I. (2010). Rank Friction: An Ordinal Approach to Persistent Profitability.

MLA Style

Powell, T., and I. Reinhardt. Rank Friction: An Ordinal Approach to Persistent Profitability. 2010.

Chicago Style

Powell, T, and I Reinhardt. 2010. “Rank Friction: An Ordinal Approach to Persistent Profitability.”
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+ Powell, T More by this author

Role:: Author

+ Reinhardt, I More by this author

Role:: Author

Publication date:: 2010-11-01

UUID:: uuid:8213026b-503c-403d-8da2-e813a39fb7f4
Local pid:: oai:eureka.sbs.ox.ac.uk:1929
Deposit date:: 2012-01-23

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Copyright date:: 2010

Licence:: Terms and Conditions of Use for Oxford University Research Archive

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