The performance of German firms in the business-related service sectors: a dynamic analysis

Nguyen van Phu, Ulrich Kaiser () and Francois Laisney
Authors registered in the RePEc Author Service: Phu Nguyen-Van

No 00-32, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

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 firstorder Markov chain and a multinomial logit specification to model the transition probabilitites. 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: Markov chain; service sector; business survey; firm performance; multinomial logit model; generalized additive model (search for similar items in EconPapers)
JEL-codes: C14 C23 L89 (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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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 (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5315

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