Effect of Inflation Related Factors upon Business Firms Acting as Suppliers to the United States Air Force

摘要

Phase II examines the behavior of some 1000 public corporate segments in the aerospace industry. In concentrates on the impact of sales to the government and the Air Force on various aspects of firm performance including profitability, efficiency, and capital management. The data for the analysis are drawn from Standard and Poor's COMPUSTAT Business Information File; Disclosure, Inc.; Securities and Exchange Commission Form 10K data; the World Aviation Directory; and the Individual Contract Action Reports (Department of Defense Form 350). Two methodologies are employed. The first compares those firms with no sales to the government with those that have 75 percent, 50 percent, and 25 percent sales to the government. Statistical tests for differences in means are employed. This analysis is replicated for those firms with no sales to the Air Force and those with 75 percent, 50 percent, and 25 percent sales to the Air Force. The second methodology involves multiple regression analysis. Here the impact of government and Air Force sales are evaluated while controlling for other differences between firms including differences in size, efficiency, and type of aerospace producer. The regression analysis also includes separate evaluation of all public aerospace firms and those public aerospace firms in the 3000-3999 Standard Industrial Classification four digit industries. Both methodologies are employed in examining the data for 1977, 1978, and 1979.