African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4131

Full Length Research Paper

Is enlarging the market share the best strategy for maximizing profits

Hsiao-Ping Chu
Department of Business Administration, Ling Tung University, Taichung City, Taiwan
Email: [email protected]

  •  Published: 30 September 2013

Abstract

This paper determines the best market strategy that can enable a firm to maximize its profit. An advanced panel threshold regression model is employed to investigate the panel threshold effect of market share on firm profits among publicly traded Taiwan firms. The results confirm that the double threshold effect does exist between market share and profit. Some important policy implications emerge from the findings.

 

Key words: Market share, profit, panel threshold regression model.