Common Properties and Sectoral Specificities in the Dynamics of U.S. Manufacturing Companies

Bottazzi, Giulio; Secchi, Angelo

doi:10.1023/b:reio.0000031366.28559.c1

Cited by 153 publications

(130 citation statements)

References 13 publications

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“…We treat the introduction of new products and packs as potentially endogenous and instrument for these variables in a dynamic growth model. Similar to some of other studies (e.g., Dunne andHughes, 1994, Bottazzi andSecchi, 2003) we find that smaller firms grow faster than larger ones. Our main result is that the introduction of new formulations, as well as of new packs, has a significant impact on growth in the short run, but only new forms have a long term effect on growth.…”

Section: Introductionsupporting

confidence: 80%

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Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

2016

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We use quarterly sales data from the UK pharmaceuticals market between 2003 and 2013 and estimate the impact of new introductions, i.e., new products and pack varieties within an anatomical therapy class on business unit growth. Using a dynamic lag adjustment growth model that accounts for endogeneity of new introductions, we find that a new product contributes to 18 per cent growth of the business unit while a new pack variety leads to 7 per cent growth for the business unit in the long run. Further, we find that there is significant variation in growth by size of firm and that the marginal effect of additional products on growth is larger for smaller business units. However, the marginal effect of pack varieties does not differ by firm size. AbstractWe use quarterly sales data from the UK pharmaceuticals market between 2003 and 2013 and estimate the impact of new introductions, i.e., new products and pack varieties within an anatomical therapy class on business unit growth. Using a dynamic lag adjustment growth model that accounts for endogeneity of new introductions, we find that a new product contributes to 18 per cent growth of the business unit while a new pack variety leads to 7 per cent growth for the business unit in the long run. Further, we find that there is significant variation in growth by size of firm and that the marginal effect of additional products on growth is larger for smaller business units. However, the marginal effect of pack varieties does not differ by firm size.

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Section: Introductionsupporting

confidence: 80%

“…2 On the other hand, lack of such positive relationship is reported in Geroski et al (1997) and Bottazzi et al (2001).…”

Section: Introductionmentioning

confidence: 78%

Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

2016

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“…I will explain below why statistical analyses performed from the economists' standpoint are generally untrustworthy, with few exceptions [20]. Our alternative to taking advice from economics texts and papers for the purpose of modelling markets will be stated below.…”

Section: Should Econophysicistsmentioning

confidence: 99%

Response to “Worrying Trends in Econophysics”

McCauley

2006

Physica A: Statistical Mechanics and its Applications

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This article is a response to the recent "Worrying Trends in Econophysics" critique written by four respected theoretical economists [1]. Two of the four have written books and papers that provide very useful critical analyses of the shortcomings of the standard textbook economic model, neo-classical economic theory [2,3] and have even endorsed my book [4]. Largely, their new paper reflects criticism that I have long made [4,5,6,7,] and that our group as a whole has more recently made [8]. But I differ with the authors on some of their criticism, and partly with their proposed remedy.

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“…Early studies have found no relationship between rate of growth and size of the firm (Hart, 1962;Hymer and Pashigan, 1962). But most of the later studies have found a negative relation between firm size and growth contrary to Gibrat"s law (Kumar, 1985;Hall, 1987;Dunne and Hughes, 1994;Almus and Nerlinger, 2000;Bottazzi and Secchi, 2003). Though, empirical literature on the relationship between firm size and growth has for the most part rejected the stochastic model, some have found weak evidence to support Gibrat"s law for larger firms (Mansfield, 1962;Evans, 1987).…”

Section: Determinants Of Firm Growthmentioning

confidence: 91%

Understanding the determinants of firm growth in young REITs

Gopinath

Quaranta²,

Wyatt³

et al. 2012

Proceedings of the 19th Annual European Real Estate Society Conference - Edinburgh, Scotland

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The main objective of this study is to investigate the determinants of firm growth in young REITs with the view that REITs with its unique operating conditions may have different implications for new venture growth. This study aims to (a) document growth characteristics of REITs, (b) empirically examine different growth determinants of REITs, (c) explore different growth strategies adopted by REITs, and (d) investigate the dual relationship between growth and profitability in REITs. We use GMM-system estimator to test a dynamic panel data model of firm growth that incorporates different influencers of growth in REITs. Using data on 148 US equity REITs that had its IPO during the period 1993-2005, we find that REIT growth is inversely proportional to REIT size, age and leverage and directly related to cash flow and insider ownership. We also find positive persistency in growth rates in young REITs. But, sustained growth among REITs beyond five years is rare. Also, new REITs that experience high growth in its early years are more likely to survive longer and REITs failure rate declines with size and age. Finally, we find a small positive influence of profit rates on subsequent growth and a positive and significant influence of growth on profits.

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Common Properties and Sectoral Specificities in the Dynamics of U.S. Manufacturing Companies

Cited by 153 publications

References 13 publications

Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

Growth and Returns to New Products and Pack Varieties: The Case of UK Pharmaceuticals

Response to “Worrying Trends in Econophysics”

Understanding the determinants of firm growth in young REITs

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