Testing Gibrat’s law: empirical evidence from panel unit root tests of turkish firms
Alper Aslan ()
MPRA Paper from University Library of Munich, Germany
The purpose of this paper is to use panel unit root tests to see if Gibrat’s law holds in Turkey. Gibrat's Law establishes that firm growth is a random walk, it means that the probability of a given proportional change in size during a specified period is the same for all firms in a given industry. In this paper, it is examined Gibrat law in Turkey empirically by using Chen & Lu (2003) methodology and use the panel unit root method to investigate the relation between firm size and firm growth. Since it has been observed that many panel unit root tests are invalid when cross-section correlation problem and also finds that conclusion is not the same.
Keywords: Gibrat’s Law; Firm Growth; MADF Test (search for similar items in EconPapers)
JEL-codes: L11 L20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cwa and nep-ent
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:10594
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