This document summarizes research showing a link between organizational culture and financial performance metrics. The research analyzed data from 127 companies that completed an organizational culture survey. It found that companies scoring in the top 25% on culture traits like mission and adaptability significantly outperformed those in the bottom 25% on financial metrics like return on assets, sales growth, and market value over both the short and long term. Specifically, high-scoring companies earned 2-3 times more profit per dollar of assets and grew sales 2-3 times faster than low-scoring companies in the year surveyed. They also maintained these advantages in subsequent years. Thus, organizational culture can provide a sustainable competitive advantage impacting long-term financial success.
The analysis found a statistically significant relationship between a more diverse leadership and better financial performance. The companies in the top quartile of gender diversity were 15 percent more likely to have financial returns that were above their national industry median. Companies in the top quartile of racial/ethnic diversity
were 30 percent more likely to have financial returns above their national industry median. Companies in the bottom quartile for both gender and ethnicity/race were statistically less likely to achieve above-average financial returns than the average companies in the dataset
Article: Influence of Corporate Board Characteristics on Firm Performance of ...McRey Banderlipe II
Using disclosure information from 29 listed property companies in the Philippines, the results revealed that managerial ownership positively influences firm performance. Moreover, firm size, leverage, and age influence the accounting-based measures of performance to a great extent than the market-based measures. Further research should focus on the overall impact of corporate governance using different measures of performance to better assist the decision making of the company’s stakeholders.
January 23rd, 2012
What Is CEO Talent Worth?
By Professor, David F. Larcker and Brian Tayan, Researcher, Corporate Governance Research Program, Stanford Graduate School of Business
January 24, 2012
The topic of executive compensation elicits strong emotions among corporate stakeholders and practitioners. On the one hand are those who believe that chief executive officers in the United States are overpaid. On the other hand are those who believe that CEOs are simply paid the going fair-market rate.
Much less effort, however, is put into determining whether total compensation is commensurate with the value of services rendered.
We examine the issue and explain how such a calculation might be performed. We ask:
* How much value creation should be attributable to the efforts of the CEO?
* What percentage of this value should be fairly offered as compensation?
* Can the board actually perform this calculation? If not, how does it make rational decisions about pay levels?
Read the attached Closer Look and let us know what you think!
The analysis found a statistically significant relationship between a more diverse leadership and better financial performance. The companies in the top quartile of gender diversity were 15 percent more likely to have financial returns that were above their national industry median. Companies in the top quartile of racial/ethnic diversity
were 30 percent more likely to have financial returns above their national industry median. Companies in the bottom quartile for both gender and ethnicity/race were statistically less likely to achieve above-average financial returns than the average companies in the dataset
Article: Influence of Corporate Board Characteristics on Firm Performance of ...McRey Banderlipe II
Using disclosure information from 29 listed property companies in the Philippines, the results revealed that managerial ownership positively influences firm performance. Moreover, firm size, leverage, and age influence the accounting-based measures of performance to a great extent than the market-based measures. Further research should focus on the overall impact of corporate governance using different measures of performance to better assist the decision making of the company’s stakeholders.
January 23rd, 2012
What Is CEO Talent Worth?
By Professor, David F. Larcker and Brian Tayan, Researcher, Corporate Governance Research Program, Stanford Graduate School of Business
January 24, 2012
The topic of executive compensation elicits strong emotions among corporate stakeholders and practitioners. On the one hand are those who believe that chief executive officers in the United States are overpaid. On the other hand are those who believe that CEOs are simply paid the going fair-market rate.
Much less effort, however, is put into determining whether total compensation is commensurate with the value of services rendered.
We examine the issue and explain how such a calculation might be performed. We ask:
* How much value creation should be attributable to the efforts of the CEO?
* What percentage of this value should be fairly offered as compensation?
* Can the board actually perform this calculation? If not, how does it make rational decisions about pay levels?
Read the attached Closer Look and let us know what you think!
CEO’s Values, Management Style and Firm Performance: Evidence from Social Ent...SEFORÏS
A substantial body of research emphasizes the importance of the person in charge of an organization for a firm’s decisions and performance, yet less is known about which individual traits and experiences can explain variation in management styles that contribute to differences in firm performance. Our paper explores the possibility that a CEO’s personal values help shape his or her management style, which in turn helps drive firm outcomes.
The objective of the study is to measure the impact of the commitment in corporate social
responsibility (CSR) in its various forms on the financial performance (FP). Thus, on the basis of a
questionnaire theoretically constructed and administered to 327 managers operating in four business sectors
The corporate governance is a popular topic within two last decade, and the emerging economies are practicing &enhancing their performances. The review is conducted to assess the effectiveness of the corporate governance implications on firm’s performances. The study followed the deductive approach and the journal articles, and the reports have used the source of the review. As per the literature findings, the researcher developed a conceptual design for the case review. The independent variable is the corporate governance mechanism, and the dependent variable is organizations performances. Both independent and dependent variables comprise the different type of corporate governance practice and the different function of the organizational performances. The review found that all the types of corporate governance practices are influenced to the organizational performance and the better corporate governance mechanism can enhance all type of performances.
Corporate Governance and Corporate Profitability Empirical Study of Listed La...ijtsrd
Corporate governance is concerned with ways in which all parties interested in the well- being of the organization attempt to ensure that mangers and other insiders take measures or adopt mechanisms that safeguard the interests of the stakeholders.. The purpose of the study is to find out the impact of corporate governance on profitability of listed Land and Property companies in Sri Lanka. Return of Assets is used as dependent variable. To measure the corporate governance, Board size, Board composition and independent directors of Remuneration committee. number of auditors are considered in this study. Firm size was considered as control variable in this study. The data were collected from firms annual financial reports and Data Stream over the period of 2011to 2016, from the CSE website. Descriptive statistics, correlation analysis, multiple linear regression analysis were used to analyse the data and examine the hypotheses by using the E-views 10 version, in this study. The findings revealed that there is a positive and significant relationship between ROA with auditors, board composition. Independent directors of Remuneration committee and board size are insignificantly correlated with ROA. Furthermore, it was found that the control variable firm size was insignificant in influencing firm performance ROA ..This study provides useful information for policy makers, regulators in improving the corporate governance policies in the future and also helps in increasing and understanding the relationship between corporate governance and firms performance. S. Anandasayanan | H. Thavarasasingam "Corporate Governance and Corporate Profitability: Empirical Study of Listed Land and Property Companies in Sri Lanka" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd20309.pdf
Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/20309/corporate-governance-and-corporate-profitability-empirical-study-of-listed-land-and-property-companies-in-sri-lanka/s-anandasayanan
Corporate social responsibility institutional drivers a comparative study fro...Adam Shafi Shaik PhD.
ABSTRACT
This study develops an internal–external institutional framework that explains why firms act in socially responsible ways in the emerging country context of India and Saudi Arabia. Utilizing a mixed method of in-depth study selected companies & individuals, the author found that internal institutional factors, including ethical corporate culture and top management commitment, and external institutional factors, including globalization pressure, Government embeddedness, and normative social pressure, will affect the likelihood of firms to act in socially responsible ways. In particular, implicit ethical corporate culture plays a key role in predicting different aspects of corporate social responsibility (CSR), while external institutional mechanisms mainly predict market-oriented CSR initiatives. This study contributes to the research on CSR antecedents by showing that in the emerging economy of India and Saudi Arabia, CSR toward non market stakeholders is more close
The Impact of Shared Values, Corporate Cultural Characteristics, and Implemen...CSCJournals
Firms' implementations of Corporate Social Responsibility (CSR) strategies have gained attention worldwide in recent years. Because engaging in CSR may impact the profitability from the resultant cost increases, firms often deliberate in the CSR decision-making process. When carrying out decisions, they may consider how social values can be created when pursuing economic interests. Corporate culture is a soft power that facilitates cohesion, enabling a firm to exhibit a common direction in its operations. Therefore, differences in corporate culture characteristics impact a firm's implementation of CSR activities and communication of related policies, which in turn affects the firm's competitiveness. This study used a questionnaire survey method to survey employees of firms listed in the 2015 and 2016 CSR Award List compiled by Common Wealth Magazine. Employees of firms listed in the "large enterprises," "medium-sized enterprises," and "little Giant" categories served as the research subjects. A total of 430 questionnaires were distributed, with each company receiving 3-5 questionnaires. Subsequently, 323 valid questionnaires were returned. Descriptive statistics, reliability analysis, and regression analysis were conducted to examine the effects of shared values, corporate cultural characteristics (CCC), and CSR activities on innovative behavior (IB). Results showed that strategic thinking of shared values had a significant and positive effect on CSR strategies, and different corporate cultural characteristics were significantly related to CSR strategies. Second, shared values, CCC, and CSR activities correlated positively with IB. indicating that the employees held a common consensus to include CSR in their firm's core operations in order to implement CSR through the strategic thinking of shared values and develop a sustainable corporate culture. Doing so enhances firms' competitiveness, creates social welfare, and instigate employees' innovative behavior.
By David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April 2016
Download
This Research Spotlight provides a summary of the research literature on whether companies with diverse boards (in terms of background, gender, or ethnicity) exhibit better performance and governance quality than companies without diverse boards.
It reviews the evidence of:
The relation between diversity and corporate performance
The relation between diversity and compensation
The relation between diversity and governance quality
The impact of mandatory quotas
The impact of diversity on group performance
This Research Spotlight expands upon issues introduced in the Quick Guide “Board of Directors: Structure and Consequences.”
Based on the research of Dr. Anthony Boyce of Michigan State University, this research shows the relationship between culture and performance describing.
CEO’s Values, Management Style and Firm Performance: Evidence from Social Ent...SEFORÏS
A substantial body of research emphasizes the importance of the person in charge of an organization for a firm’s decisions and performance, yet less is known about which individual traits and experiences can explain variation in management styles that contribute to differences in firm performance. Our paper explores the possibility that a CEO’s personal values help shape his or her management style, which in turn helps drive firm outcomes.
The objective of the study is to measure the impact of the commitment in corporate social
responsibility (CSR) in its various forms on the financial performance (FP). Thus, on the basis of a
questionnaire theoretically constructed and administered to 327 managers operating in four business sectors
The corporate governance is a popular topic within two last decade, and the emerging economies are practicing &enhancing their performances. The review is conducted to assess the effectiveness of the corporate governance implications on firm’s performances. The study followed the deductive approach and the journal articles, and the reports have used the source of the review. As per the literature findings, the researcher developed a conceptual design for the case review. The independent variable is the corporate governance mechanism, and the dependent variable is organizations performances. Both independent and dependent variables comprise the different type of corporate governance practice and the different function of the organizational performances. The review found that all the types of corporate governance practices are influenced to the organizational performance and the better corporate governance mechanism can enhance all type of performances.
Corporate Governance and Corporate Profitability Empirical Study of Listed La...ijtsrd
Corporate governance is concerned with ways in which all parties interested in the well- being of the organization attempt to ensure that mangers and other insiders take measures or adopt mechanisms that safeguard the interests of the stakeholders.. The purpose of the study is to find out the impact of corporate governance on profitability of listed Land and Property companies in Sri Lanka. Return of Assets is used as dependent variable. To measure the corporate governance, Board size, Board composition and independent directors of Remuneration committee. number of auditors are considered in this study. Firm size was considered as control variable in this study. The data were collected from firms annual financial reports and Data Stream over the period of 2011to 2016, from the CSE website. Descriptive statistics, correlation analysis, multiple linear regression analysis were used to analyse the data and examine the hypotheses by using the E-views 10 version, in this study. The findings revealed that there is a positive and significant relationship between ROA with auditors, board composition. Independent directors of Remuneration committee and board size are insignificantly correlated with ROA. Furthermore, it was found that the control variable firm size was insignificant in influencing firm performance ROA ..This study provides useful information for policy makers, regulators in improving the corporate governance policies in the future and also helps in increasing and understanding the relationship between corporate governance and firms performance. S. Anandasayanan | H. Thavarasasingam "Corporate Governance and Corporate Profitability: Empirical Study of Listed Land and Property Companies in Sri Lanka" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd20309.pdf
Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/20309/corporate-governance-and-corporate-profitability-empirical-study-of-listed-land-and-property-companies-in-sri-lanka/s-anandasayanan
Corporate social responsibility institutional drivers a comparative study fro...Adam Shafi Shaik PhD.
ABSTRACT
This study develops an internal–external institutional framework that explains why firms act in socially responsible ways in the emerging country context of India and Saudi Arabia. Utilizing a mixed method of in-depth study selected companies & individuals, the author found that internal institutional factors, including ethical corporate culture and top management commitment, and external institutional factors, including globalization pressure, Government embeddedness, and normative social pressure, will affect the likelihood of firms to act in socially responsible ways. In particular, implicit ethical corporate culture plays a key role in predicting different aspects of corporate social responsibility (CSR), while external institutional mechanisms mainly predict market-oriented CSR initiatives. This study contributes to the research on CSR antecedents by showing that in the emerging economy of India and Saudi Arabia, CSR toward non market stakeholders is more close
The Impact of Shared Values, Corporate Cultural Characteristics, and Implemen...CSCJournals
Firms' implementations of Corporate Social Responsibility (CSR) strategies have gained attention worldwide in recent years. Because engaging in CSR may impact the profitability from the resultant cost increases, firms often deliberate in the CSR decision-making process. When carrying out decisions, they may consider how social values can be created when pursuing economic interests. Corporate culture is a soft power that facilitates cohesion, enabling a firm to exhibit a common direction in its operations. Therefore, differences in corporate culture characteristics impact a firm's implementation of CSR activities and communication of related policies, which in turn affects the firm's competitiveness. This study used a questionnaire survey method to survey employees of firms listed in the 2015 and 2016 CSR Award List compiled by Common Wealth Magazine. Employees of firms listed in the "large enterprises," "medium-sized enterprises," and "little Giant" categories served as the research subjects. A total of 430 questionnaires were distributed, with each company receiving 3-5 questionnaires. Subsequently, 323 valid questionnaires were returned. Descriptive statistics, reliability analysis, and regression analysis were conducted to examine the effects of shared values, corporate cultural characteristics (CCC), and CSR activities on innovative behavior (IB). Results showed that strategic thinking of shared values had a significant and positive effect on CSR strategies, and different corporate cultural characteristics were significantly related to CSR strategies. Second, shared values, CCC, and CSR activities correlated positively with IB. indicating that the employees held a common consensus to include CSR in their firm's core operations in order to implement CSR through the strategic thinking of shared values and develop a sustainable corporate culture. Doing so enhances firms' competitiveness, creates social welfare, and instigate employees' innovative behavior.
By David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April 2016
Download
This Research Spotlight provides a summary of the research literature on whether companies with diverse boards (in terms of background, gender, or ethnicity) exhibit better performance and governance quality than companies without diverse boards.
It reviews the evidence of:
The relation between diversity and corporate performance
The relation between diversity and compensation
The relation between diversity and governance quality
The impact of mandatory quotas
The impact of diversity on group performance
This Research Spotlight expands upon issues introduced in the Quick Guide “Board of Directors: Structure and Consequences.”
Based on the research of Dr. Anthony Boyce of Michigan State University, this research shows the relationship between culture and performance describing.
The Denison Culture Model is a way of looking at an organization to identify, codify and understand organizational culture. This overview sums up the model.
Features of Organizational Culture and Their Impact on Banking System Perform...Fakulteti Ekonomik,UV
Abstract: Culture is recently considered by researchers as one of the important factors that affects the long-term performance of organizations. This article aims at presenting the general cultural features of major banks operating in Vlora Region, and their impact on the performance of these banks. This research paper will aim to analyze whether these cultural profiles are similar to the cultural profile that contributes to the organization high-performance. The paper methodology is based on the combination between primary and secondary research. The paper ends with the conclusions and recommendations.
Keywords: Organizational culture, financial performance, bank sector
The Effect Of Firm Size And Organizational Culture On The Quality Of Financial Reporting In Sharia Microfinancing Institution (Baitul Maal Wa Tamwil) (The Case Of Ex Banyumas Residency-Indonesia)
Accounting 281
Budget Preparation Project
Spring 2015
Based on the information provided below, please prepare the following:
1. Sales Budget
2. Production Budget
3. Direct Materials Budget
4. Direct Labor Budget
5. Manufacturing Overhead Budget
6. Selling and Administrative Expense Budget
7. Schedule of Expected Collections from Customers
8. Schedule of Expected Payments for Direct Materials
9. Cash Budget
10. Budgeted Income Statement
The Alvis & Cordis Company, Inc. expects to sell 200,000 cases of a high energy drink during 2013, with sales peaking in the fourth quarter. Expected unit sales are: 30,000 in Quarter 1; 40,000 cases in Quarter 2; 50,000 cases in Quarter 3 and 80,000 cases in Quarter 4. The Alvis & Cordis Company plans to sell the energy drink for $35 per case.
25% of sales are expected to be collected in the quarter of the sale with the remaining 75% percent of sales to be collected in the quarter following the sale. Accounts receivables of $88,000 at the end of December 31, 2012 are expected to be collected in full in the first quarter of 2013.
The management desires an ending finished goods inventory equal to 30% of next quarter's sales. Sales for the first quarter of 2014 are estimated to be 42,000. The management desires an ending inventory of raw materials equal to 15% of the next quarter's production requirements. Production for the first quarter of 2014 is estimated to be 225,000. The manufacture of each case requires 12 pounds of raw materials. The cost per pound of raw materials is $0.30.
20% of DM are paid in the quarter purchased and 80% in the following quarter. Accounts payable of $31,400 at December 31, 2012 are expected to be paid in full in the first quarter of 2013.
Each case produced requires 0.45 direct labor hours per case and the anticipated hourly rate of pay is $18.00.
Manufacturing Overhead is budgeted as follows:
Variable costs:
Indirect materials ($0.80/hour)
Indirect labor ($2.10/hour)
Utilities ($0.50/hour)
Maintenance ($0.40/hour)
Fixed Costs:
Supervisory salaries $42,000
Depreciation $19,000
Property taxes & insurance $6,000
Maintenance $8,300
Selling and Administrative Expenses are budgeted as follows:
Variable expenses:
Sales commissions ($0.75 per case)
Freight-out ($0.60 per case)
Fixed expenses:
Advertising $21,000
Sales salaries $44,000
Property taxes and insurance $16,000
Depreciation $12,000
Income Statement Assumptions:
Interest expense is $22,100.
Income tax rate is 30%.
Cash Budget Assumptions:
Beginning cash balance is $22,900.
Management would like to have a cash balance of at least $30,000 at the beginning of each quarter for contingencies.
Management plans to spend $110,000 during the year on equipment purchases: $24,000 in the first quarter; $38,000 in the second quarter; $22,000 in the third quarter; and $26,000 in the fourth quarter.
Direct labor is paid 100% in the quarter incurred.
MOH and Selling & Administrative expenses: all items except depreciati.
1. An organization’s culture is critical to its success or failure (Schein, 1992; 1999). Many executives, managers,
employees, and experts intuitively recognize the importance of an organization’s culture for the health of the
organization. However, prior to 1984, there was no hard evidence to prove the relationship between
organizational culture and financial performance results. For over the last twenty-five years, Dr. Daniel Denison
has conducted research to prove the link between organizational culture and financial performance metrics
(Denison 1984; Denison 1990). This Research Note highlights the latest compelling evidence linking
organizational culture to financial performance metrics such as return-on-assets (ROA), sales growth and
market-to-book ratio (MtB), illustrating that a strong and effective organizational culture can provide a
competitive advantage to an organization.
Figure 1: Scores on Denison Organizational Culture Survey
Bottom 25% Top 25%
We used the data collected
from 127 public companies
that completed the Denison
Organizational Culture Survey
(DOCS). This research shows a
significant relationship
between culture and financial
performance.
Figure 1 shows the DOCS
composite profiles in the top
25% versus those in the bottom
25% on their overall organiza-
tional culture results. Table 1
translates these differences
into financial results, indicating
that companies with higher
positive culture scores also
have higher financial results.
ROA = 3.5%
Sales Growth = 24.8%
MtB = 4
ROA = 1.2%
Sales Growth = 7.5%
MtB = 2.5
Bringing organizational culture
and leadership to the bottom line
2. Research Method
To examine the relationship between culture and
performance, we looked at a sample of public
companies surveyed using the Denison
Organizational Culture Survey from 1995 to 2010.
Organizations were removed if there were fewer
than 100 total respondents. Additionally,
organizations were removed if they were a
subdivision of a public company. The result was a
sample of 127 companies in a wide variety of
industries incorporated primarily in the US (86%).
(Research indicates that the DOCS results are
comparable across countries [Denison Consulting,
2012; Denison, Haaland, & Goelzer, 2003]).
Measuring Performance
Once the sample was obtained, the next step was to
measure performance over time. For this study, three
financial metrics were chosen to examine: return-on-
assets, sales growth and market-to-book ratio.
First we took a look at return-on-assets. ROA is the
percentage of profits derived from a company’s
total assets, in other words, ROA tells you how much
profit a company generated for each dollar in assets.
The higher the percentage of ROA, the better the
organization is at using their invested capital, or
assets, to turn a profit. For example, if two companies
independently invest $100,000 in equipment for a
project and one company produces $10,000 in profit
and another produces $15,000, the second
company has a greater ROA.
Second, we took a look at sales growth which is
related to profitability. Sales growth is usually
expressed as the percentage of increased sales from
one year to the next. For example, if we surveyed an
organization in 2000, year 1 was calculated by
subtracting the sales from 1999 from the current sales
year (2000). To get the percentage, we divided the
difference by 1999 sales.
Finally we looked at market-to-book ratio as another
measure of an organization’s financial performance.
The MtB seeks to show the value of a company, by
comparing the book value of a share to the market
value of a share. For example, assume an
organization has $100 Million in assets on the balance
sheet and $75 Million in liabilities. The book value of
that organization is $25 Million. (Assets - Liabilities =
Book Value). If there are 10 million shares
outstanding, each share would represent $2.50 of
book value. If each share sales on the market at $5
(market value), then the MtB would be 2 (because
5/2.5 = 2). Essentially, the market value is the
investment community’s expectations of the worth of
the company.
We predicted that the companies with the higher
scores in the DOCS culture traits of Mission,
Consistency, Adaptability and Involvement would
also have better ROA, sales growth, and MtB ratios
than those with lower scores. To test our hypothesis,
we linked the organizations in our database to
publicly available financial performance data from
Standard & Poor’s COMPUSTAT database.
Performance Measure Bottom 25% Top 25%
Return-on-Assets 1.2% 3.5%
Sales Growth 7.5% 24.8%
Market-to-Book Ratio 2.5 4.0
Table 1: The Results
“Culture matters…
If the organization begins to fail, this implies that
elements of the culture have become
dysfunctional and must change. Failure to
understand culture and take it seriously can
have disastrous consequences for an
organization.”
Edgar H. Schein
The Corporate Culture Survival Guide, 1999, p.3
3. The Results
The results of our analyses show some exciting
findings. As you can see in Table 1, in the year of the
survey, those organizations with the lowest scoring
percentiles for Mission, Consistency, Involvement,
and Adaptability earn $1,200 for every $100,000
spent on assets, while those in the top 25% earned
$3,500. This profitability is also related to how fast
these companies are growing. The sales growth of
the top 25% group was 24.8% versus the bottom
scoring companies at 7.5%. Turning to the MtB ratio,
the investment/ market community is recognizing the
organizations with the higher culture scores are 400%
of book value versus 250% for organizations in the
bottom 25%.
The evidence indicates that the companies with
higher culture scores have better performance in the
year of the survey. But this study also allowed us to
take a look at the longitudinal data and the results
indicate that those high scoring organizations also
perform better in the future. Figures 2, 3, and 4
illustrate how the bottom and top 25% or
organizations rank in their industry (by NAICS code)
over a three year period for each of the three
performance measures.
The graphs indicate that today’s culture affects
tomorrow’s performance. Figure 2 shows that
companies in the top 25% exhibited a slight gain in
industry ROA within a three year period, whereas the
bottom 25% companies displayed an opposite trend.
Figure 3 shows that, as measured by sales growth,
both groups displayed a negative trend but the
bottom 25% experienced a sharper decline than the
top 25% in subsequent years. Figure 4 shows the top
25% remained at a consistent advantage over the
bottom 25% in market value.
Figure 2: Return-on-Assets
Figure 3: Sales Growth
Figure 4: Market-to-Book Ratio