Growth processes of high-growth firms as a four-dimensional chicken and egg
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.Citation
Coad, A., Cowling, M. and Siepel, J., 2016. Growth processes of high-growth firms as a four-dimensional chicken and egg. Industrial and Corporate Change, 26(4), pp.537-554.Publisher
Oxford AcademicJournal
Industrial and Corporate ChangeDOI
10.1093/icc/dtw040Additional Links
https://academic.oup.com/icc/article/26/4/537/3100426Type
ArticleLanguage
enISSN
9606491EISSN
14643650ae974a485f413a2113503eed53cd6c53
10.1093/icc/dtw040