The Performance of German Firms in the Business-Related Service Sectors: A Dynamic Analysis

Phu Nguyen-Van, Ulrich Kaiser () and Francois Laisney

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: We analyze the performance of firms in the German business-related services sector. A quarterly business survey provides the panel data base of our study. Firm performance is measured by the survey respondents’ ordinal indication of their changes in total sales. We use a first-order Markov chain and a multinomial logit specification to model the transition probabilities. Three variants of the model are estimated: a linear index model with and without unobserved firm heterogeneity and a semiparametric model. Main results are that firm size has a positive effect on firm performance, that young firms outperform older competitors, that a bank-relationship with a single creditor has a stabilizing effect and that the degree of diversification has a negative impact on firm performance. The legal status appears to have no significant effect.

Keywords: Service sector; business survey; firm performance; Markov chain (search for similar items in EconPapers)
JEL-codes: C14 C23 L89 (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://beta.u-strasbg.fr/WP/2001/2001-16.pdf (application/pdf)

Related works:
Journal Article: The Performance of German Firms in the Business-Related Service Sector: A Dynamic Analysis (2004)
Working Paper: The Performance of German Firms in the Business-Related Service Sector: A Dynamic Analysis (2004)
Working Paper: The performance of German firms in the business-related service sectors: a dynamic analysis (2000)
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:ulp:sbbeta:2001-16

Access Statistics for this paper

More papers in Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).