Firm growth and scaling of growth rate variance in multiplant firms

Alex Coad ()

Economics Bulletin, 2008, vol. 12, issue 9, 1-15

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.

JEL-codes: L2 (search for similar items in EconPapers)
Date: 2008-03-12
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Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Firm Growth and Scaling of Growth Rate Variance in Multiplant Firms (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-07l20013

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