Is there a risk of growing fast? The relationship between organic employment growth and firm exit

Haibo Zhou and Peter van der Zwan

Industrial and Corporate Change, 2019, vol. 28, issue 5, 1297-1320

Abstract: Growing firms are the drivers of economic dynamics. While the existing literature often focuses on the average effect of growth on firm survival, we investigate how survival rates vary across the growth distribution using Dutch longitudinal firm-level data (1999–2012). We theorize and find a U-shaped relationship between organic employment growth and subsequent exit due to firm death in various model specifications. Low positive growth increases survival, too much growth could be harmful for some subgroups of firms, and the steepness of the U-shape depends on firm age, size, and industry.

JEL-codes: L21 L25 L26 M21 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtz006 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:indcch:v:28:y:2019:i:5:p:1297-1320.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().