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How performance of top companies are related on Global Competitiveness Index?

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Abstract

Given the role and importance of competitiveness indicators for businesses’ performance and profitability, the question arises why no research has been undertaken internationally in this regard. Therefore, the main purpose of the present study is to investigate the impact of competitiveness index on the financial performance of top companies in the world using performance theory and to evaluate the validity of Global Competitiveness Index data. For this purpose, 176 top companies in the world from 2013 to 2018 that were profitable among the top 200 companies each year were selected as the statistical population. World Bank annual reports, Global Competitiveness Index, and Fortune site were used to collect the data. Also, the data analysis was done according to the panel data method using Eviews10 software. The results show that in general, there is a positive relationship between competitiveness index and financial performance of top companies in the world. On the other hand, the per capita income of the countries in which the top companies belonged was considered a control variable and the results show that the per capita income has a positive and significant relationship with the financial performance of the top companies in the world.

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Abbreviations

GCI:

Global Competitiveness Index

GDP:

gross domestic product

UK:

United Kingdom

Lab:

labor market efficiency

Fin:

financial system

Tech:

technology adoption

Eco:

macroeconomic environment

Ms.:

market size

GDPPC:

gross domestic product per capita

GLS:

generalized least square

OLS:

ordinary least square

LLC:

Levin, Lin, and Chu

d.f.:

degree of freedom

Prob.:

probability

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Availability of data and materials

Data on the Global Competitiveness Index are extracted from the GCI Annual Reports between years 2013 and 2018. Countries’ GDPPC data are also extracted from World Bank reports between the years 2013 and 2018.

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Authors and Affiliations

  1. University of Tehran, Tehran, Iran

    Mehdi Khazaei, Mohammad Azizi & Mohamadreza Zali

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  1. Mehdi Khazaei
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  2. Mohammad Azizi
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  3. Mohamadreza Zali
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Contributions

Mehdi Khazaei performed the data collection and analysis, and was a major contributor in writing the manuscript. Mohammad Azizi helped write the paper and collect the data. Mohamadreza Zali helped with data analysis. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Mohammad Azizi.

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The authors declare no competing interests.

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Khazaei, M., Azizi, M. & Zali, M. How performance of top companies are related on Global Competitiveness Index?. J Glob Entrepr Res 11, 129–139 (2021). https://doi.org/10.1007/s40497-021-00276-z

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