TY - JOUR
T1 - Growth processes of high-growth firms as a four-dimensional chicken and egg
AU - Coad, Alex
AU - Cowling, Marc
AU - Siepel, Josh
N1 - © The Author 2016. Published by Oxford University Press on behalf of Associazione ICC. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.
PY - 2016/10/3
Y1 - 2016/10/3
N2 - 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.
AB - 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.
U2 - 10.1093/icc/dtw040
DO - 10.1093/icc/dtw040
M3 - Article
SN - 0960-6491
VL - 26
SP - 537
EP - 554
JO - Industrial and Corporate Change
JF - Industrial and Corporate Change
IS - 4
ER -