Economic Moat: A Line of Defense for the Defense Industry
Abstract
Defense contractor financial performance is traditionally measured using accounting profit. In academic literature, accounting profit has been proxied through different applications of accounting rates of return. However, the use of these rates pose certain limitations. First, accounting rates of return have been applied inconsistently. Next, academic research has not typically assessed accounting returns against a firms opportunity costs. As a result, there is a literature gap in defense research that assesses whether defense contractors earn sustainable returns beyond the cost to produce those returns.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 25, 2021
- Accession Number
- AD1136751
Entities
People
- Karina M. Fernando
Organizations
- Air Force Institute of Technology