Jean Belin published an article co-authored with Mahdi Fawaz (senior lecturer at the’) in Defence and Peace Economics (DPE), intitle «Profitability of Defense Companies in the US and Europe ».
The profitability of American and European defence companies is influenced by past profitability, debt policy, company size and defence specialisation.
Taking into account the effect of these variables, the individual characteristics of companies and the specificities of time, the profitability of American defence companies remains higher than that of European companies.
Furthermore, American defence companies are more profitable when they specialise in defence, whereas European companies are more dependent on the civilian market and its development.
A company's position in the rankings Stockholm international peace research institute (SIPRI) has a negative impact on the profitability of American companies, whereas it has a positive influence on the profitability of European companies.
These results could be due to excessive fragmentation (of orders and industries) in the European market and high concentration in the US market.
