$8.$ Determining firm performance is a complex interaction of firm effects and industry effects, with other factors also considered. Based on historical analysis, what do we know about firm and industry effects?

$$Managerial actions rather than firm effects have a large role in firm performance

$$Macro environmental effects such as a recession have more impact than either firm or industry effects.

$$Firm effects have more impact on performance than industry effects

$$Industry effects have more impact on performance than firm effects