Title
Growth processes of high-growth firms as a four-dimensional chicken and egg
Date Issued
01 August 2017
Access level
open access
Resource Type
journal article
Author(s)
Cowling M.
Siepel J.
University of Sussex
Publisher(s)
Oxford University Press
Abstract
This article investigates whether high-growth firms grow in different ways from other firms. Specifically, we analyze how firms grow along several dimensions (growth of sales, employment, assets, and operating profits) using Structural Vector Autoregressions. Causal relations are identified by using information contained in the (non-Gaussian) growth rate distributions. For most firms, the growth process starts with employment growth, which is then followed by sales growth, then growth of operating profits, and finally growth of assets. In contrast, high growth firms put more emphasis on growth of operating profits driving other dimensions of growth, with employment growth occurring at the end.
Start page
537
End page
554
Volume
26
Issue
4
Language
English
OCDE Knowledge area
Negocios, Administración Zoología, Ornitología, Entomología, ciencias biológicas del comportamiento
Scopus EID
2-s2.0-85032862071
Source
Industrial and Corporate Change
ISSN of the container
09606491
Sponsor(s)
Economic and Social Research Council - ES/J008427/1.
Sources of information: Directorio de Producción Científica Scopus