{'fraction_non_alphanumeric': 0.018808777429467086, 'fraction_numerical': 0.006269592476489028, 'mean_word_length': 5.978142076502732, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
The Determinant of Profitability: Industry or Enterprise? Evidence in Productive Services Enterprise of China

The aim of this paper is to examine the determinant of profitability differences in Chinese productive service enterprise, not only including industry effect and enterprise effect as previous literatures, but also containing specific internal factors, such as enterprise operating years, resource, and so on. We employ recently developed the Shapley value decomposition framework to disassemble the specific factors’ contribution to profitability difference and combine it to calculate the contribution of industry and enterprise effect from the whole and segment sample. The empirical results reveal both industry effect, which mainly caused by market structure and market demand, and enterprise effect chiefly influenced by ownership types, unproductive expenditure and financing channel, play significant role in shaping profitability difference. In the whole sample, industry effect contributes 42.71% and 51.12% respectively in return on sale and Per Capita Create Profits model. In addition, the finding clearly indicates that the industry effect increases in low marketization regions or high administrative barriers industries, enterprise effect vice versa.