Title
Firm growth and scaling of growth rate variance in multiplant firms
Date Issued
12 March 2008
Access level
metadata only access
Resource Type
journal article
Author(s)
Max Planck Institute of Economics
Abstract
While Gibrat's Law assumes that growth rate variance is independent of size, empirical work has usually found a negative relationship between growth rate variance and firm growth. Using data on French manufacturing firms, we observe a relatively low, but statistically significant, negative relationship between firm size and growth rate variance. Furthermore, we observe that growth rate variance does not decrease monotonically the more plants a firm possesses, which is at odds with a number of theoretical models.
Volume
12
Issue
9
Language
English
OCDE Knowledge area
Economía
Scopus EID
2-s2.0-55349136579
Source
Economics Bulletin
ISSN of the container
15452921
Sources of information: Directorio de Producción Científica Scopus