@inbook{d61b8e7a8989456e8b789666fa74d708,
title = "An Investigation of ROCE and Its Drivers: Empirical Analysis of European Companies",
abstract = "The quest for value and profitability has attracted substantial interest among researchers and managers over the last decades. Even though many studies have been conducted most companies struggle to provide competitive returns. The golden path of being profitable has not yet been unveiled. This article analyses the long-term profitability and its drivers based on a sample of 23,489 European manufacturing companies, from 2000 to 2008. The empirical study reveals that companies have not been able to increase revenues and the Return on Capital Employed (ROCE) simultaneously. However, statistically significant differences were found among industries, countries, and between small and large companies. Furthermore the paper presents the correlation between the drivers of profitability and the impact of value drivers on ROCE. The study illustrates that growth strategies, without managing cost and assets effectively cannot provide profitability.",
keywords = "C2C-Cycle, EVA, Profitability, Return on capital employed, Revenue growth, Shareholder value, Value driver",
author = "Heimo Losbichler and Peter Hofer and Christoph Eisl and Birgit Zauner",
year = "2012",
doi = "10.1007/978-3-7908-2747-7_7",
language = "English",
isbn = "978-3-7908-2746-0",
series = "Contributions to Management Science",
publisher = "Springer",
pages = "119--148",
booktitle = "Contributions to Management Science",
address = "Germany",
}