EconPapers    
Economics at your fingertips  
 

Corporate performances and market selection. Some comparative evidence

Giulio Bottazzi, Giovanni Dosi, Nadia Jacoby (), Angelo Secchi and Federico Tamagni
Additional contact information
Nadia Jacoby: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Diverse theories of industry dynamics predict heterogeneity in production efficiency to be the driver of firms' growth, survival and industrial change, either through a direct link between efficiency and growth, or through an indirect effect via profitabilities, as more productive firms can enjoy higher profit margins which, under imperfect capital markets, allow them to invest and grow more. Does the empirical evidence bear such predictions? This paper explores the dynamics of selection and reallocation through an investigation of the productivity-profitability-growth relations at the firm level. Exploiting large panels of Italian and French industrial firms, we find that heterogeneity in efficiencies primarily yield persistent profitability differentials, whereas the relationships of corporate growth with either productivity or profitability appear much weaker, if at all existent. This suggests that selection forces are much less strong than usually assumed. Rather, the links between efficiency and corporate growth seem profoundly mediated by large degrees of behavioural freedom. The results robustly applies across different industrial sectors and across the two countries.

Date: 2009
Note: View the original document on HAL open archive server: https://hal.science/hal-00422142
References: View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Published in 2009, pp.1953-1996

Downloads: (external link)
https://hal.science/hal-00422142/document (application/pdf)

Related works:
Journal Article: Corporate performances and market selection: some comparative evidence (2010) Downloads
Working Paper: Corporate performances and market selection. Some comparative evidence (2010)
Working Paper: Corporate performances and market selection. Some comparative evidence (2010)
Working Paper: Corporate performances and market selection. Some comparative evidence (2009) Downloads
Working Paper: Corporate performances and market selection. Some comparative evidence (2009) Downloads
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:hal:cesptp:hal-00422142

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2023-11-23
Handle: RePEc:hal:cesptp:hal-00422142