On the profilability of large german corporations characteristics, competition and distribution fits

Abstract

This paper explores the empirical distributions and descriptive statistics of both the economic rentability and economic growth variables (number of employees, total assets and sales) of 182 large German firms during the period 1990 – 2012, along with the theoretical framework of the neoclassical competition, the importance of large firms over the macroeconomic fluctuations and the realocation of capital within the economy based on profit rates. The results show that at the aggregate level, ROA and the growth variables both prove an approximate adjustment to a Laplace distribution.Thus, we can identify similarities in the evolution and properties of these variables with the United States, Spanish and Icelandic models.