The Rise of Star Firms: Intangible Capital and Competition

Meghana Ayyagari, Asli Demirguc-Kunt and Vojislav Maksimovic

No 627, Working Papers from Center for Global Development

Abstract: The large divergence in the returns of top-performing star firms and the rest of the economy is substantially reduced when we account for the mismeasurement of intangible capital. Star firms produce and invest more per dollar of invested capital, have more valuable innovations as measured by the market value of patents, and are as exposed to competitive shocks as non-stars. While star firms have higher markups, these are predicted early in their life-cycle at a time when they are small. Overall, correcting for mismeasurement, the evidence points to superior ability of star firms to use tangible and intangible capital.

JEL-codes: E22 L1 (search for similar items in EconPapers)
Pages: 98 pages
Date: 2022-11-17
New Economics Papers: this item is included in nep-cfn, nep-com and nep-ger
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cgdev.org/publication/rise-star-firms- ... l&utm_campaign=repec

Related works:
Journal Article: The Rise of Star Firms: Intangible Capital and Competition (2024)
Working Paper: The Rise of Star Firms: Intangible Capital and Competition (2019)
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:cgd:wpaper:627

Access Statistics for this paper

More papers in Working Papers from Center for Global Development Contact information at EDIRC.
Bibliographic data for series maintained by Publications Manager ().