Profitability, Diversification and Patrimony in Three Argentine Big Companies, 1926-1955

Abstract

This paper presents a comparative analysis of three large Argentine companies (Bunge & Born, Garovaglio & Zorraquín, and Mercado Central de Frutos) between 1926 and 1955. The evolution of equity and profits is described, and related to business and macroeconomic conditions. These indicators reflect the performance of the companies, and the results of different business strategies. Using as sources reports and balance sheets the relationship between diversification and profits is discussed.