Bursting into life: firm growth and growth persistence by age

Alex Coad (), Sven-Olov Daunfeldt and Daniel Halvarsson
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Daniel Halvarsson: Ratio

Small Business Economics, 2018, vol. 50, issue 1, No 4, 55-75

Abstract: Abstract Is firm growth more persistent for young or old firms? Theory gives us no clear guidance, and previous empirical investigations have been hampered by a lack of detailed data on firm age, as well as a non-representative coverage of young firms. We overcome these shortcomings using a rich dataset on all limited liability firms in Sweden during 1998–2008, covering firms of all ages and information on registered start year. Sales growth for new ventures is characterized by positive persistence, which quickly turns negative as firms get older. Young firms are more likely to have two consecutive periods of positive growth. While new firms experience an early burst of sustained growth, older firms have more erratic growth paths.

Keywords: Firm age; Growth rate autocorrelation; Sales growth; Growth persistence; Learning-by-doing; Minimum efficient scale; Growth paths (search for similar items in EconPapers)
JEL-codes: D22 L25 L26 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (42)

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Related works:
Working Paper: Bursting into life: Firm growth and growth persistence by age (2015)
Working Paper: Bursting into life: Firm growth and growth persistence by age (2015)
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DOI: 10.1007/s11187-017-9872-8

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