On the distributional properties of size, profit and growth of Icelandic firms

Einar Jón Erlingsson (), Simone Alfarano (), Marco Raberto () and Hlynur Stefánssonn ()
Additional contact information
Einar Jón Erlingsson: Reykjavik University
Hlynur Stefánssonn: Reykjavik University

No 2012/01, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: In this paper, we analyze the distributional properties of the balance sheets of Icelandic firms by performing an empirical analysis of total assets, profit rates and growth rates using a data set of 2818 Icelandic firms during the period 2000-2009. We find that the firms size measure, i.e. total assets, have the same heavy tail characteristics as various studies have shown, e.g. for U.S. and Italian firms. The heavy tail nature of the total assets distribution seems to be robust w.r.t. a boom-bust cycle of the economy as well as special characteristics of Icelandic firms, e.g. their relatively small size and private ownership. Another important finding is that the profit rates, or return on assets, of Icelandic firms follow a Laplace like distribution similar to U.S. firms. Additionally, we identified deviations from the distributional regularities, namely the power law behavior of firms' size and Laplacian distributions of growth and profit rates, during the booming period of the economy 2005-2007.

Keywords: Firm size; Profit rates; Growth rates; Power law; Laplace distribution; Icelandic Firms (search for similar items in EconPapers)
JEL-codes: C12 D01 D22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.doctreballeco.uji.es/wpficheros/erlingssonetal2012.pdf (application/pdf)

Related works:
Journal Article: On the distributional properties of size, profit and growth of Icelandic firms (2013)
Working Paper: On the distributional properties of size, pro fit and growth of Icelandic firms (2012)
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: http://EconPapers.repec.org/RePEc:jau:wpaper:2012/01

Access Statistics for this paper

More papers in Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)
Contact information at EDIRC.
Series data maintained by María Aurora Garcia Gallego ().