Download this Paper Open PDF in Browser

Transient Industry Effects. How Much are Industries Exposed?

46 Pages Posted: 7 Dec 2015  

Melina Moleskis

University of Navarra - IESE Business School

Miguel A. Ariño

University of Navarra - IESE Business School

Miguel Angel Canela

University of Barcelona - Faculty of Mathematics

Date Written: November 19, 2015

Abstract

An important factor contributing to performance heterogeneity is transient industry effects. In this paper, we explore the importance of such effects in the cava, beer and automotive sectors, using the methodology of Ariño et al. (2008). We assess the exposure of these industries to the business cycle and measure the intensity of their responsiveness. Further, the scope of our analysis includes key social and political events which may help managerial decision making. Our study draws on consumer attitudes and changing habits, as well as the effectiveness of government intervention schemes. This paper contributes to the transient industry literature by providing new insights on the importance of transient effects. The application of the transient industry effects model allows us to identify lasting changes in the relationship of an industry and the business cycle, as well as important external shocks whose impact cannot be neglected in the strategic planning and decision making by managers and policy makers.

Keywords: transient industry effects; business cycle; cava; beer; automotive

Suggested Citation

Moleskis, Melina and Ariño, Miguel A. and Canela, Miguel Angel, Transient Industry Effects. How Much are Industries Exposed? (November 19, 2015). IESE Business School Working Paper No. WP-1130-E. Available at SSRN: https://ssrn.com/abstract=2697165

Melina Moleskis

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Miguel Ariño (Contact Author)

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Miguel Canela

University of Barcelona - Faculty of Mathematics ( email )

Barcelona, 08007
Spain

Paper statistics

Downloads
14
Abstract Views
154