Firm growth and scaling of growth rate variance in multiplant firms

Coad, Alex (2008) Firm growth and scaling of growth rate variance in multiplant firms. Economics Bulletin, 12 (9). pp. 1-15.

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Abstract

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

Item Type: Article
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Depositing User: Alex Coad
Date Deposited: 06 Feb 2012 18:31
Last Modified: 10 Sep 2012 14:36
URI: http://sro.sussex.ac.uk/id/eprint/16974
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