Persistent high-growth firms in China’s manufacturing

Abstract

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. Exploiting a representative panel covering the period of the China's miracle, we find that HG firms outperform other firms, showing higher productivity, higher profitability, larger investment intensity, higher sales from product innovation, lower interest expenses and lower leverage. HG firms are also relatively young, larger in size, more often exporters and more concentrated in non-State-controlled companies. Terms of use: Documents inHowever, regression analysis suggests that none of the indicators of structural characteristics and performance considered above displays any statistical association with the ability to persistently replicate high-growth over time. The results speak against the long-run effectiveness of policies supporting the creation and backing of high-growth firms.JEL codes: D22, D24, L26

Firm employment growth in China: The role of marketization and regional economic factors

“…The estimated coefficients provide evidence that firm‐level factors are relevant to explain firm employment growth, as reported by Coad and Holzl () in their review of studies on the internal determinants of firm growth focusing on non‐Chinese enterprises. Ceteris paribus, the more productive the firms, the greater the employment growth, in line with the results in Moschella et al (); similarly, and also in line with Moschella et al (), firms more exposed to foreign markets and more innovative tend to expand employment more. Conversely, employment growth is negatively related to the firm size at the beginning of the period, as commonly found in the literature .…”

“…It is worth noticing at this stage that while the evidence on the impact of regional factors on firm employment growth in China is scarce, there is no paucity of studies addressing the firm‐level determinants of employment (see Degryse, Lu, & Ongena, ; Dosi & Yu, ; Moschella, Tamagni, & Yu, ; Yu, Dosi, Grazzi, & Lei, , among others). Our empirical investigation takes stock of these and other contributions on firm‐level covariates and complements these studies in that it analyses the regional economic and institutional determinants of the observed heterogeneity in firm employment growth across the Chinese provinces.…”

Long-term firm growth: an empirical analysis of US manufacturers 1959–2015

“…Most high-growth firms do not replicate their high-growth performance over time and are in fact "one-hit wonders" (Hölzl, 2014;Daunfeldt and Halvarsson, 2015). Moreover, it is unclear what characteristic is crucial for the performance of the very few firms that succeed to consistently remain in the high-growth quantiles: most of supposedly strong drivers of growth -such as productivity, profitability, financial structure, innovation and innovation persistence-do not correlate with high-growth persistence (see Bianchini et al, 2017;Moschella et al, 2019;Guarascio and Tamagni, 2019), while size has contrasting effects on high-growth in different studies (small high-growth firms display negative autocorrelation in Coad 2007 andCoad andHölzl 2009, while persistent out-performers are more often present among micro firms in Capasso et al 2013).…”

“…Previous empirical studies on the persistence of growth (see e.g. Coad et al, 2014;Capasso et al, 2013;Hölzl, 2014;Daunfeldt and Halvarsson, 2015;Bianchini et al, 2017;Moschella et al, 2019), provides limited evidence of persistence. The primary means of identifying persistence has been to estimate autoregressive coefficients (the presence of a statistically significant one being indicative of persistence).…”

High-Growth Companies in Russia: The Influence of Affiliation on Growth Factors

“…Пол но стью или частичного ее поддерживают многие исследователи (см., напр. : [Brown, Mason, 2014;Coad et al, 2014;Goswami, Medve dev, Olafsen, 2019;Moschella, Tamagni, Yu, 2019;Катуков, Малыгин, Смородинская, 2019]). Поиск значимых факторов при та ком подходе, естественно, в большой сте пени обесценивается, а практические ре комендации сводятся к тому, что государ ство должно не столько поддерживать бы строрастущие фирмы, сколько создавать благоприятные рамочные условия для их существования [Смородинская, 2019].…”