Firm Growth and Scaling of Growth Rate Variance in Multiplant Firms

Alex Coad ()

No 2007-101, Jena Economics Research Papers from Friedrich-Schiller-University Jena

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 ï¬ rm growth. Using data on French manufacturing ï¬ rms, we observe a relatively low, but statistically signiï¬ cant, negative relationship between ï¬ rm size and growth rate variance. Furthermore, we observe that growth rate variance does not decrease monotonically the more plants a ï¬ rm possesses, which is at odds with a number of theoretical models.

Keywords: Growth rate variance; Firm growth; Scaling relationship; Multiplant ï¬ rms; Gibrat's Law (search for similar items in EconPapers)
JEL-codes: L20 L25 (search for similar items in EconPapers)
Date: 2007-12-18
New Economics Papers: this item is included in nep-bec and nep-ent
References: Add references at CitEc
Citations:

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2007/wp_2007_101.pdf (application/pdf)

Related works:
Journal Article: Firm growth and scaling of growth rate variance in multiplant firms (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2007-101

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().