How does the financial performance of sugar-using firms compare to other agribusinesses? An accounting and economic profit rates analysis

Purpose The United States (US) sugar program protects domestic farmers from unrestricted imports of heavily-subsidized global sugar. Sugar-using firms (SUFs) criticize that for causing US prices to be higher than world prices. This study examines the financial performance publicly traded SUFs determine if they are performing at an economic disadvantage in terms accounting profitability, risk and profitability compared other industries. Design/methodology/approach Firm-level market data 2010 2019 were utilized construct metrics SUFs, agribusinesses general firms. These analyzed how compare their agribusiness peer group companies. comprehensive analysis this covers: (1) profit rates, (2) drivers (3) (4) trend (5) comparisons. Quantile regression Wilcoxon–Mann–Whitney statistics employed statistical Findings Regarding various measures, outperform peers benchmark all levels rates. Furthermore, industries using 17 French Fama classifications, have highest return on investment rate―measured by Economic Value Added® margin―and second-lowest opportunity cost capital, measured weighted average capital. Originality/value finds nothing suggest hinders success contrary recent claims sugar-using Notably is evaluation rates a series robustness techniques.