Channels of Size Adjustment and Firm Performance

Holger Breinlich, Stefan Niemann and E Solomon

Economics Discussion Papers from University of Essex, Department of Economics

Abstract: We use unique business register data for the United Kingdom to investigate the effects of different forms of firm expansion and contraction on firm-level performance indicators such as wages and productivity. We distinguish between adjustment of employment and turnover at existing establishments, expansions and contractions taking place via greenfield investment and disinvestment, and via acquisitions and sell-offs. We show that the choice of adjustment channel has important implications for the evolution of firm-level performance indicators. In terms of aggregate importance, we demonstrate that the two external adjustment forms (greenfield and M&A) account for at least 50% of the changes in aggregate wages, profits and productivity associated with firm expansions and contractions.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://repository.essex.ac.uk/2730/ original version (application/pdf)

Related works:
Journal Article: Channels of size adjustment and firm performance (2012)
Working Paper: Channels of size adjustment and firm performance (2012)
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:esx:essedp:2730

Ordering information: This working paper can be ordered from
Discussion Papers Administrator, Department of Economics, University of Essex, Wivenhoe Park, Colchester CO4 3SQ, U.K.

Access Statistics for this paper

More papers in Economics Discussion Papers from University of Essex, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Essex Economics Web Manager ().