Growth volatility and size: A firm-level study
Résumé
This paper provides a systematic cross-country investigation of the relation between a firm’s growth volatility and its size. For the first time the analysis is carried out using comparable and representative sets of data sourced by official business registers of an important number of countries. We show that there exists a robust negative relation between growth volatility and size with an average elasticity equal to . We check the robustness of this result against a number of potential sources of bias and in particular with respect to sectoral disaggregation and against the inclusion of firm age. Our result is consistent with the idea that independently from specific country characteristics there exists a common underlying mechanism driving the elasticity between size and growth volatility. We then propose two mechanisms able to explain our result and we conclude discussing its relevance with respect to the recent literature on granularity.
Domaines
Economies et financesFormat du dépôt | Notice |
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Type de dépôt | Article dans une revue |
Titre |
en
Growth volatility and size: A firm-level study
|
Résumé |
en
This paper provides a systematic cross-country investigation of the relation between a firm’s growth volatility and its size. For the first time the analysis is carried out using comparable and representative sets of data sourced by official business registers of an important number of countries. We show that there exists a robust negative relation between growth volatility and size with an average elasticity equal to . We check the robustness of this result against a number of potential sources of bias and in particular with respect to sectoral disaggregation and against the inclusion of firm age. Our result is consistent with the idea that independently from specific country characteristics there exists a common underlying mechanism driving the elasticity between size and growth volatility. We then propose two mechanisms able to explain our result and we conclude discussing its relevance with respect to the recent literature on granularity.
|
Auteur(s) |
Flavio Calvino
1
, Chiara Criscuolo
2, 1
, Carlo Menon
1, 2
, Angelo Secchi
3, 4
1
OCDE -
Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
( 310903 )
- Organisation for Economic Co-operation and Development (OECD)
2, rue André Pascal 75775 Paris Cedex 16
- France
2
LSE -
London School of Economics and Political Science
( 328453 )
- Houghton Street, London WC2A 2AE
- Royaume-Uni
3
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
4
PJSE -
Paris Jourdan Sciences Economiques
( 1171428 )
- 48 boulevard Jourdan 75014 Paris
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2018-05
|
Volume |
90
|
Page/Identifiant |
390 - 407
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Mots-clés |
en
Firm size , Gibrat’s law, Volatility of growth
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DOI | 10.1016/j.jedc.2018.04.001 |
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