Growth, Acquisition Activity and Firm Size: Evidence from the United Kingdom

Kumar, Manmohan S.

doi:10.2307/2098540

Cited by 163 publications

(115 citation statements)

References 16 publications

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“…Scherer and Ross (1990:144) reach the conclusion that recent studies find only a "weak" correlation between growth rates and size. Studies finding mild departures of growth rates' independence from firm size include Kumar (1985), Hall (1987) and Evans (1987). Acs and Audretsch (1990: 145) state that, when they incorporate the impact of firm exits, they find that the greater propensity of small firms to exit the industry offsets the higher growth rate of surviving firms, and this could reconcile their results with Evans (1987) and Hall (1987).…”

Section: Dynamics Of Firm Growth and Liquidity Constraintsmentioning

confidence: 99%

Firm Growth and Liquidity Constraints: A Dynamic Analysis

2006

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Using a large unbalanced panel data set of Portuguese manufacturing firms surviving over the period from 1990 to 2001, the purpose of this paper is to examine whether liquidity constraints faced by business firms affect firm growth. We use a GMM-system to estimate a dynamic panel data model of firm growth tha t incorporates cash flow as a measure of liquidity constraints and persistence of growth. The model is estimated for all size classes, including micro firms. Our findings suggest that smaller and younger firms have higher growth-cash flow sensitivities tha n larger and more mature firms. This is consistent with the suggestion that financial constraints on firm growth may be relatively more severe for small and young firms. Finally, firms that were small and young and strongly liquidity-constrained at the beginning of the sample period exhibited more persistent growth than those that were large and old and weakly liquidity-constrained. These results have significant policy implications.

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Section: Dynamics Of Firm Growth and Liquidity Constraintsmentioning

confidence: 99%

Firm Growth and Liquidity Constraints: A Dynamic Analysis

2006

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“…If LPE holds firms growth rate should be uncorrelated with factors such as size and age. However, many studies find a negative correlation between firms growth and size (Mansfield, 1962, Evans, 1987, Kumar, 1985, Dunne and Hughes, 1994, McPherson, 1996, Das, 1995, and between firms growth and age (Evans, 1987, Dunne andHughes, 1994). Models of learning provide an explanation for the negative correlation between firm growth, and age and size (Lucas, 1978, Jovanovic, 1982, Pakes and Ericson, 1990.…”

Section: Introductionmentioning

confidence: 99%

The effect of institutional development on the growth of Brazilian firms

Carvalho¹

2008

Rev. Bras. Econ.

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Este artigo foca nos determinantes da taxa de crescimento das firmas no Brasil. Em particular, investigamos as características individuais das empresas que determinam o seu crescimento, como o desenvolvimento institucional afeta a performance da firma e como o desenvolvimento institucional afeta de maneira diversa pequenas e grandes empresas. Nossos resultados, consistentemente com os modelos de crescimento, indicam que taxas de crescimento decrescem com a idade e tamanho da empresa. Conforme o esperado, empresas que pertencem a um grupo econômico, exportam ou mantêm operações no exterior crescem mais rapidamente. Crescimento é negativamente correlacionado com lucratividade. Observamos também que fraco desenvolvimento institucional, mensurado em termos de corrupção e ineficiência do sistema judiciário e baixo desenvolvimento financeiro, tem impacto negativo sobre o crescimento das empresas. O impacto negativo da corrupção e ineficiência do sistema judiciário é mais acentuado em firmas menores. As grandes empresas são as que mais se beneficiam do desenvolvimento financeiro. No geral, nossos resultados indicam que o desenvolvimento institucional pode ser um mecanismo importante para a promoção do crescimento. Além do mais, o baixo desenvolvimento institucional tem o efeito perverso de promover a concentração. This article focuses on the determinants of firm's growth in Brazil. In particular it investigates the individual characteristics of firm that determine its

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“…20 The estimation strategy consists of having, as far as possible, a complete set of controls to examine whether a robust association between wages and the probability of firm closing (and vice-versa) can be identified.…”

Section: Resultsmentioning

confidence: 99%

“…It has been largely shown in the empirical literature on firm survival that firm size and firm age are negatively associated with failure rates [see, for example, Kumar (1985), Evans (1987) use the same criteria to measure age in the 1993-95 period, we used as a proxy for firm age the tenure (in years) of the worker with the longest tenure within the firm. 15 A linear spline function is used to define the effect of the age of the firm.…”

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confidence: 99%

Wages and the Risk of Displacement

Carneiro

Portugal²

Research in Labor Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in WageS and the riSk oF diSPlacementby Anabela Carneiro and Pedro Portugal WAGE DYNAMICS NETWORK WO R K I N G PA PE R S E R I E S N O 1159 / F E B R UA RY 2010This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=878334.In 2010 all ECB publications feature a motif taken from the €500 banknote. WAGES AND THE RISK WAGE DYNAMICS NETWORK Wage Dynamics NetworkThis paper contains research conducted within the Wage Dynamics Network (WDN). The WDN is a research network consisting of economists from the European Central Bank (ECB) and the national central banks (NCBs) of the EU countries. The WDN aims at studying in depth the features and sources of wage and labour cost dynamics and their implications for monetary policy. The specific objectives of the network are: i) identifying the sources and features of wage and labour cost dynamics that are most relevant for monetary policy and ii) clarifying the relationship between wages, labour costs and prices both at the firm and macro-economic level.The WDN is chaired by Frank Smets (ECB). Giuseppe Bertola (Università di Torino) and Julian Messina (Universitat de Girona) act as external consultants and Ana Lamo (ECB) as Secretary.The refereeing process of this paper has been co-ordinated by a team composed of Gabriel Fagan (ECB, chairperson), Philip Vermeulen (ECB), Giuseppe Bertola, Julian Messina, Jan Babecký (CNB), Hervé Le Bihan (Banque de France) and Thomas Mathä (Banque centrale du Luxembourg).The paper is released in order to make the results of WDN research generally available, in preliminary form, to encourage comments and suggestions prior to final publication. The views expressed in the paper are the author's own and do not necessarily reflect those of the ESCB.

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Growth, Acquisition Activity and Firm Size: Evidence from the United Kingdom

Cited by 163 publications

References 16 publications

Firm Growth and Liquidity Constraints: A Dynamic Analysis

Firm Growth and Liquidity Constraints: A Dynamic Analysis

The effect of institutional development on the growth of Brazilian firms

Wages and the Risk of Displacement

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