Age and firm growth. Evidence from three European countries

Giorgio Barba Navaretti (), Davide Castellani and Fabio Pieri
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Giorgio Barba Navaretti : Department of Economics, Management and Quantitative Methods, University of Milan, Italy
Authors registered in the RePEc Author Service: Giorgio Barba Navaretti ()

No 2013/41, Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research

Abstract: This paper provides new insights on the dependence of firm growth on age along the entire distribution of (positive and negative) growth rates, and conditional on survival. Using data from the EFIGE survey, and adopting a quantile regression approach, we uncover evidence for a sample of French, Italian and Spanish manufacturing firms with more than 10 employees in the period from 2001 to 2008. After controlling for several firms’ characteristics, country and sector specificities we find that: (i) young firms grow faster than old firms, especially in the highest growth quantiles; (ii) young firms face the same probability of declining than their older counterparts; (iii) results are robust to the inclusion of other firms’ characteristics such as labor productivity, capital intensity, and the financial structure; (iv) high growth is associated with younger CEOs and other attributes which capture the attitude of the firm toward growth and change. The effect of age on firm growth is rather similar across countries.

Keywords: firm growth; age; quantile regression (search for similar items in EconPapers)
JEL-codes: L21 L25 L26 L60 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2013-12-18
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-ent, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Age and firm growth: evidence from three European countries (2014)
Working Paper: Age and firm growth. Evidence from three European countries (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lucirc:2013_041

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