The Relationship Between Firm Size and Firm Growth: The Case of the Czech Republic

Roman Fiala and Veronika Hedija
Additional contact information
Roman Fiala: Department of Economic Studies, College of Polytechnics Jihlava, Tolstého 16, 586 01 Jihlava, Czech Republic
Veronika Hedija: Department of Economic Studies, College of Polytechnics Jihlava, Tolstého 16, 586 01 Jihlava, Czech Republic

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2015, vol. 63, issue 5, 1639-1644

Abstract: This paper deals with the investigation of the relationship between firm size and firm in the Czech Republic during 2007-2012. The study aims to examine to what extent the confirmation or rejection of Gibrat's law depends on the indicator of firm size. For measuring firm size we use three indicators: revenues, number of employees and total assets. The study uses data collected from the database Albertina CZ Gold Edition. Final dataset includes the data about more than 35,000 firms. The validity of Gibrat's law was tested with the help of linear regression model with first-order autoregressive process. Gibrat's law is rejected for all three indicators of firm size. Hence, the selected indicator of firm size is not proved to be important factor in verification of Gibrat's law validity. It is also found out that the small firms in profit industries (A-N according to CZ-NACE classification) grow faster than their larger counterparts in the Czech Republic.

Keywords: firm growth; firm size; Gibrat's law; Law of proportionate effect; OLS estimator (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://acta.mendelu.cz/doi/10.11118/actaun201563051639.html (text/html)
http://acta.mendelu.cz/doi/10.11118/actaun201563051639.pdf (application/pdf)
free of charge

Related works:
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:mup:actaun:actaun_2015063051639

DOI: 10.11118/actaun201563051639

Access Statistics for this article

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis is currently edited by Markéta Havlásková

More articles in Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis from Mendel University Press
Bibliographic data for series maintained by Ivo Andrle ().