- A-Z
- Jena Economic Resea...
- Volume 1
- Firm Growth and Sca...
Firm Growth and Scaling of Growth Rate Variance in Multiplant Firms
- Autor(in)
- Erschienen
- 18. Dezember 2007
- Nummer des Discussion-Papers
-
2007-101
- Schlagwort(e)
-
Firm growth
Gibrat’s Law
Growth rate variance
Multiplant firms
Scaling relationship
- Zusammenfsg.
-
While Gibrat’s Law assumes that growth rate variance is independent of size, empirical work has usually found a negative relationship between growth rate variance and firm growth. Using data on French manufacturing firms, we observe a relatively low, but statistically significant, negative relationship between firm size and growth rate variance. Furthermore, we observe that growth rate variance does not decrease monotonically the more plants a firm possesses, which is at odds with a number of theoretical models.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- entrepreneurship
- JEL-Classification for JER
- L25 - Firm Performance: Size, Diversification, and Scope ; L20 - General