The debate on the role of corporate

The debate on the role of corporate size in explaining firm profitability and value has been ongoing in the field of corporate finance. Early research (Scherer, 1973 and Shepherd, 1972), as quoted by Niresh and Velnampy (2014) emphasized the importance of economies of scale and
other efficiencies in larger firms. On the other hand, the structur conduct performance paradigm highlights the importance of market concentration and conduct in explaining profitability and firm value. In particular, Baumol (1967) as quoted by Velnampy (2013) argues that the advantages of larger firms stem from their market power and greater access to capital markets
while Caves and Porter (1977) and Porter (1979) as quoted by Baumanand Kaen (2003) attribute variations in profitability and market value to group strategic behavior in different industries.

Results (Indonesian) 2:

Perdebatan tentang peran ukuran perusahaan dalam menjelaskan profitabilitas perusahaan dan nilai telah berlangsung di bidang keuangan perusahaan. Penelitian awal (Scherer, 1973 dan Shepherd, 1972), seperti dikutip Niresh dan Velnampy (2014) menekankan pentingnya skala ekonomi dan
efisiensi lainnya di perusahaan besar. Di sisi lain, paradigma perilaku kinerja structur menyoroti pentingnya konsentrasi pasar dan perilaku dalam menjelaskan profitabilitas dan nilai perusahaan. Secara khusus, Baumol (1967) seperti dikutip Velnampy (2013) berpendapat bahwa keuntungan dari perusahaan-perusahaan besar berasal dari kekuatan pasar dan akses yang lebih besar ke pasar modal
sementara Gua dan Porter (1977) dan Porter (1979) seperti dikutip Baumanand Kaen ( 2003) atribut variasi profitabilitas dan nilai pasar untuk kelompok perilaku strategis dalam industri yang berbeda.