| This study indicates that firm size, market share and equity/sales ratio are the principal factors contributing to the profitability (net income) of pulp and paper firms in the United States. Timberland ownership, exports, K-Factor (a measure of relative firm capacity), growth, new supply/real gross domestic product (RGDP) ratio and price index also influence the profitability of pulp and paper manufacturing firms.; Market share, an index of the structure of the pulp and paper industry, is determined by a firm's size (assets) and net income. In addition, the number of a firm's production units, K-factor, whether the firm exports, previous concentration in this market sector, number of firms, sales growth, timberland ownership, new supply/RGDP ratio, and product mix may also influence a firm's market share, but not consistently.; The present study also describes factors that help a pulp and paper manufacturing firm in decision-making about the ownership and management of timberlands. According to the research findings, net income, equity/sales ratio, mergers, firm size, and K-Factor are the most significant factors related to timberland ownership and management. The current study also confirms the findings of a number of researchers that no significant changes in the timberland ownership of firms in the pulp and paper industry have occurred during the last forty years, in spite of a decline in the area of commercial timberlands. Firms that own or manage timberlands have a significant advantage in terms of net income over those that do not. |
