Firm growth and scaling of growth rate variance in multiplant firms

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)

Abstract

While Gibrat's Law assumes that growth rate variance is independent of size, empirical work has usually found a negative relationship between growth rate variance and firm growth. Using data on French manufacturing firms, we observe a relatively low, but statistically significant, negative relationship between firm size and growth rate variance. Furthermore, we observe that growth rate variance does not decrease monotonically the more plants a firm possesses, which is at odds with a number of theoretical models.

Original languageEnglish
JournalEconomics Bulletin
Volume12
Issue number9
Publication statusPublished - 2008 Mar 12
Externally publishedYes

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Fingerprint Dive into the research topics of 'Firm growth and scaling of growth rate variance in multiplant firms'. Together they form a unique fingerprint.

Cite this