European investment banks shift focus from countries to industries for higher returns.
The study looked at how investing in different countries or industries in Europe affects financial outcomes. In the early 1990s, focusing on countries was better, but by the late 1990s and early 2000s, focusing on industries became more profitable. This change seems to be lasting, not just a short-term trend. Investment banks are now organizing their research based on industries rather than countries, showing that knowing about industries is now more important for success in Europe.