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Growth processes of high-growth firms as a four-dimensional chicken and egg
journal contribution
posted on 2023-06-09, 02:40 authored by Alex Coad, Marc Cowling, Josh SiepelJosh SiepelThis 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.
Funding
Innovation Research Centre; ESRC; ES/J008427/1
History
Publication status
- Published
File Version
- Published version
Journal
Industrial and Corporate ChangeISSN
0960-6491Publisher
Oxford University PressExternal DOI
Issue
4Volume
26Page range
537-554Department affiliated with
- SPRU - Science Policy Research Unit Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2016-08-30First Open Access (FOA) Date
2017-04-04First Compliant Deposit (FCD) Date
2017-04-04Usage metrics
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