The paper studies the persistence of prot and its determinants in emerging markets. We apply Markov chain analysis, dynamic panel GMM estimation, and quantile regression techniques to a panel of approximately 3,000 Ukrainian companies. The empirical results show a moderate level of prot persistence, as well as a relatively low speed of adjustment to the steady-state prot level, thus providing no support for the hypothesis that there is a lower persistence of prots in emerging markets due to

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... intense competition. Regarding the determinants of rm prot in an emerging market economy, the ndings from alternative methods reveal that ownership structure and regional location of the rm have a signicant impact.