Publication Type

Journal Article

Publication Date

11-2006

Abstract

One of the more interesting issues in the strategic management field is the question of whether intra-industry performance differences exist, particularly across strategic groups. Most of the existing studies have used accounting measures of performance despite the documented weaknesses of such measures. This paper examines whether financial market-based measures of performance are superior to accounting-based measures in identifying performance differences across strategic groups. Hypotheses are tested on data from an existing sample of firms in the US pharmaceutical industry. The empirical results indicate that performance differences are more likely to exist across strategic groups when financial market performance measures are used. Suggestions for further refinements are made and limitations of the study are discussed.

Keywords

Strategic planning, securities markets, business planning

Discipline

Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Strategic Change

Volume

15

Issue

7-8

First Page

373

Last Page

383

ISSN

1086-1718

Identifier

10.1002/jsc.769

Publisher

Wiley

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1002/jsc.769

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