 Application of the Model as an Investment ToolJacques Solvay, Michèle Sanglier and Paul Brenton Chapter 6 in Modelling the Growth of Corporations, 2001, pp 94-104 from Palgrave Macmillan Abstract: Abstract In Chapter 4 we provided an analysis of firm performance from an internal point of view and discussed the application of the approach to modelling corporate productivity growth as a tool for management. Here we discuss how the ideas concerning the nature of the firm and the way that it evolves and the model which reflects these can be used as an analytical tool from an external point of view, and specifically in terms of informing long-term portfolio investment choices. Our focus is entirely upon long-run investment decisions. This follows from the view of the firm as a complex self-organising institution which, because of increasing returns and positive feedback effects from learning and experience, tends to exhibit a sustained and constant process of growth. Deviations around this trend rate of growth tend to be associated with the business cycle. As we have argued earlier, in the medium term, firms are generally bound by their trend rate of growth of productivity. Keywords: Business Cycle; Firm Performance; Growth Performance; Trend Growth; Corporate Culture (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-0759-2_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.