Like milk or wine: Does firm performance improve with age?

Structural Change and Economic Dynamics

Volumn 24, Issue 1, 2013, Pages 173-189

  Coad, Alex ^a,c,d   Segarra, Agustí ^b   Teruel, Mercedes ^b  

^a MAX PLANCK INSTITUTE FOR THE SCIENCE OF HUMAN HISTORY   (Germany)

^b UNIVERSITAT ROVIRA I VIRGILI   (Spain)

^c UNIVERSITY OF SUSSEX   (United Kingdom)

^d AALBORG UNIVERSITY   (Denmark)

Author keywords

Financial structure; Firm age; Firm growth; LAD; Vector auto regression

Indexed keywords

ECONOMIC GROWTH; EMPLOYMENT GENERATION; FINANCIAL SYSTEM; FIRM SIZE; INDUSTRIAL DEVELOPMENT; INDUSTRIAL PERFORMANCE; INDUSTRIAL STRUCTURE; MANUFACTURING; PRODUCTIVITY; PROFITABILITY;

SPAIN;

EID: 84873252237     PISSN: 0954349X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.strueco.2012.07.002     Document Type: Article

References (86)

1. Aghion, P., Angeletos, G., Banerjee, A., Manova, K., 2007a. Volatility and growth: credit constraints and productivity-enhancing investment. Unpublished manuscript.
2. Aghion P., Fally T., Scarpetta S. Credit constraints as a barrier to the entry and post-entry growth of firms. Economic Policy 2007, 22:731-790.
3. Angelini P., Generale A. On the evolution of firm size distributions. American Economic Review 2008, 98:426-438.
4. Arrow K.J. The economic implications of learning by doing. Review of Economic Studies 1962, 29:155-173.
5. Autio E., Sapienza H.J., Almeida J.G. Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal 2000, 43:909-924.
6. Barron D.N., West E., Hannan M.T. A time to growth and a time to die: growth and mortality of credit unions in New York, 1914-1990. American Journal of Sociology 1994, 100:381-421.
7. Bartelsman E., Scarpetta S., Schivardi F. Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries. Industrial and Corporate Change 2005, 3:365-391.
8. Beck T., Degirgüc-Kunt A., Maksimovic V. Financial and legal constraints to growth: does firm size matter?. The Journal of Finance 2005, 60:137-177.
9. Beck T., Demirguc-Kunt A. Small and medium-size enterprises: access to finance as a growth constraint. Journal of Banking & Finance 2006, 30:2931-2943.
10. Bellone F., Musso P., Nesta L., Quere M. Market selection along the firm life cycle. Industrial and Corporate Change 2008, 17:753-777.
11. Berger A.N., Udell G.F. Relationship lending and lines of credit in small firm finance. Journal of Business 1995, 68:351-381.
12. Berger A.N., Udell G.F. The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle. Journal of Banking & Finance 1998, 22:613-673.
13. Binks M.R., Ennew C.T. Growing firms and the credit constraint. Small Business Economics 1996, 8:17-25.
14. Bottazzi G., Secchi A. Explaining the distribution of firms growth rates. Rand Journal of Economics 2006, 37:234-263.
15. Bottazzi G., Coad A., Jacoby N., Secchi A. Corporate growth and industrial dynamics: evidence from French manufacturing. Applied Economics 2011, 43:103-116.
16. Bottazzi G., Dosi G., Jacoby N., Secchi A., Tamagni F. Corporate performances and market selection. Some comparative evidence. Industrial and Corporate Change 2010, 19:1953-1996.
17. Bottazzi G., Secchi A., Tamagni F. Productivity, profitability and financial performance. Industrial and Corporate Change 2008, 17:711-751.
18. Brown C., Medoff J.L. Firm age and wages. Journal of Labor Economics 2003, 23:677-697.
19. Bruderl J., Schussler R. Organizational mortality: the liabilities of newness and adolescence. Administrative Science Quarterly 1990, 35:530-547.
20. Cabral L.M.B., Mata J. On the evolution of the firm size distribution: facts and theory. American Economic Review 2003, 93:1075-1090.
21. Calvo J.L. Testing Gibrat's law for small, young and innovating firms. Small Business Economics 2006, 26:117-123.
22. Chang Y., Gomes J.F., Schorfheide F. Learning-by-doing as a propagation mechanism. American Economic Review 2002, 92:1498-1520.
23. Cirillo P. An analysis of the size distribution of Italian firms by age. Physica A: Statistical Mechanics and Its Applications 2010, 389:459-466.
24. Coad A., Rao R., Tamagni F. Growth processes of Italian manufacturing firms. Structural Change and Economic Dynamics 2011, 22(1):54-70.
25. Coad A. The Growth of Firms: A Survey of Theories and Empirical Evidence 2009, Edward Elgar, Cheltenham, UK.
26. Coad A. Investigating the exponential age distribution of firms. Economics: the open-access. Open-Assessment E-Journal 2010, 4:2010-2017.
27. Coad A. Exploring the processes of firm growth: evidence from a vector auto-regression. Industrial and Corporate Change 2010, 19(6):1677-1703.
28. Coad A., Rao R. Firm growth and R&D expenditure. Economics of Innovation and New Technology 2010, 19:127-145.
29. Correa A., Acosta M., González A., Medina U. Size, age and activity sector on the growth of the small and medium firm size. Small Business Economics 2003, 21:289-307.
30. Das S. Size, age and firm growth in an infant industry: the computer hardware industry in India. International Journal of Industrial Organization 1995, 13:111-126.
31. Dunne P., Hughes A. Age, size, growth and survival: UK companies in the 1980s. Journal of Industrial Economics 1994, 42:115-140.
32. Dunne T., Roberts M., Samuelson L. The growth and failure of US manufacturing plants. Quarterly Journal of Economics 1989, 104:671-698.
33. Evans D.S. The relationship between firm growth, size and age: estimates for 100 manufacturing industries. Journal of Industrial Economics 1987, 35:567-581.
34. Evans D.S. Tests of alternative theories of firm growth. Journal of Political Economy 1987, 95:657-674.
35. Fagiolo G., Luzzi A. Do liquidity constraints matter in explaining firm size and growth? Some evidence from the Italian manufacturing industry. Industrial and Corporate Change 2006, 15:1-39.
36. Fariñas J., Moreno L. Firms' growth, size and age: a nonparametric approach. Review of Industrial Organization 2000, 17:249-265.
37. Fichman M., Levinthal D. Honeymoons and the liability of adolescence: a new perspective on duration dependence in social and organizational relationships. Academy of Management Review 1991, 16:442-468.
38. Fizaine F. Analyse statistique de la croissance des entreprises selon l'age et la taille. Revue d'economie politique 1968, 78:606-620.
39. Fluck, Z., Holtz-Eakin, D., Rosen, H., 1997. Where Does the Money Come From? An Empirical Investigation of Small Entrepreneurial Enterprises, Syracuse University. Metropolitan Studies Program Series Occasional Paper No. 191.
40. Garnsey E. A theory of the early growth of the firm. Industrial and Corporate Change 1998, 7:523-556.
41. Garnsey E., Stam E., Heffernan P. New firm growth: exploring processes and paths. Industry and Innovation 2006, 13:1-20.
42. Geroski P.A., Gugler K. Corporate growth convergence in Europe. Oxford Economic Papers 2004, 56:597-620.
43. Gibrat R. Les inegalites economiques: applications, aux inegalites des richesses, a la concentration des entreprises, aux populations des villes, aux statistiques des familles, etc.: d'une loi nouvelle la loi de l'effet proportionnel 1931, Recueil Sirey, Paris.
44. Greiner L. Evolution and revolution as organizations grow. Harvard Business Review 1972, 76:37-46.
45. Hall B.H. The relationship between firm size and firm growth in the US manufacturing sector. Journal of Industrial Economics 1987, 35:583-600.
46. Hall G., Hutchinson P., Michaelas N. Industry effects on the determinants of unquoted SMEs capital structure. International Journal of the Economics of Business 2000, 7:297-312.
47. Haltiwanger J., Lane J., Spletzer J. Productivity differences across employers: the roles of employer size, age, and human capital. American Economic Review Papers and Proceedings 1999, 89:94-98.
48. Hamilton R.T., Fox M.A. The financing preferences of small firm owners. International Journal of Entrepreneurial Behaviour & Research 1998, 4:239-248.
49. Hannan M.T., Freeman J. Structural inertia and organizational change. American Sociological Review 1984, 49:149-164.
50. Hart P., Prais S. The analysis of business concentration: a statistical approach. Journal of the Royal Statistical Society 1956, 119:150-191.
51. Hart P.E., Oulton N. The growth and size of firms. Economic Journal 1996, 106:1242-1252.
52. Headd B., Kirchhoff B. The growth, decline and survival of small businesses: an exploratory study of life cycles. Journal of Small Business Management 2009, 47:531-550.
53. Helfat C.E., Peteraf M.A. The dynamic resource-based view: capability lifecycles. Strategic Management 2003, 24:977-1010.
54. Holmes S., Kent P. An empirical analysis of the financial structure of small and large Australian manufacturing enterprises. The Journal of Small Business Finance 1991, 1:141-154.
55. Huergo E., Jaumandreu J. How does probability of innovation change with firm age?. Small Business Economics 2004, 22:193-207.
56. Huergo E., Jaumandreu J. Firms' age, process innovation and productivity growth. International Journal of Industrial Organization 2004, 22:541-559.
57. Jovanovic B. Selection and the evolution of industry. Econometrica 1982, 50:649-670.
58. Kandilov I.T. Do exporters pay higher wages? Plant-level evidence from an export refund policy in Chile. World Bank Economic Review 2009, 23:269-294.
59. Levinthal D.A. Organizational adaptation and environmental selection - interrelated processes of change. Organization Science 1991, 2:140-145.
60. López-Gracia J., Aybar-Arias C. An empirical approach to the financial behaviour of small and medium sized companies. Small Business Economics 2000, 14:55-63.
61. Lotti F., Santarelli E., Vivarelli M. Defending Gibrat's law as a long-run regularity. Small Business Economics 2009, 32:31-44.
62. Mata J., Portugal P. Patterns of entry, post-entry growth and survival: a comparison between domestic and foreign owned firms. Small Business Economics 2004, 22:283-298.
63. Mishina Y., Pollock T.G., Porac J.F. Are more resources always better for growth? Resource stickiness in market and product expansion. Strategic Management Journal 2004, 25:1179-1197.
64. Moreno A., Casillas J. High-growth SMEs versus non-high growth SMEs: a discriminant analysis. Entrepreneurship and Regional Development 2007, 19:69-88.
65. Myers S.C. The capital structure puzzle. Journal of Finance 1984, 39:575-592.
66. Myers S.C. Capital structure. Journal of Economic Perspectives 2001, 15:81-102.
67. Myers S.C., Majluf N. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 1984, 13:187-222.
68. Oliveira B., Fortunato A. Firm growth and liquidity constraints: a dynamic analysis. Small Business Economics 2006, 27:139-156.
69. Petersen M.A., Rajan R.G. The benefits of lending relationships: evidence from small business data. Journal of Finance 1994, 49:3-37.
70. Reichstein T., Dahl M.S., Ebersberger B., Jensen M.B. The devil dwells in the tails: a quantile regression approach to firm growth. Journal of Evolutionary Economics 2010, 20:219-231.
71. Reid G.C. Trajectories of small business financial structure. Small Business Economics 2003, 20:273-285.
72. Sánchez-Vidal J., Martín-Ugedo J.F. Financing preferences of Spanish Firms: evidence on the pecking order theory. Review of Quantitative Finance and Accounting 2005, 25:341-355.
73. Sánchez-Vidal J., Martín-Ugedo J.F. Edad y tamaño empresarial y ciclo de vida financiero 2008.
74. Segarra, A., Teruel, M., Vidal, A., Alarcón, S., 2010. Creixement i restriccions financeres a les empreses Industrials de Catalunya. Catalan Government, Departament of Economics, Monografies núm. 12.
75. Segarra, A., Teruel, M., 2009. Small firms: the effects of financial constraints on their growth. XREAP, WP XREAP2009-11.
76. Serrasqueiro Z., Nunes P.M., Leitao J., Armada M. Are there non-linearities between SME growth and its determinants? A quantile approach. Industrial and Corporate Change 2010, 10:1071-1108.
77. Shanmugam K., Bhaduri S. Size, age and firm growth in the Indian manufacturing sector. Applied Economics Letters 2002, 9:607-613.
78. Simon H., Bonini C. The size distribution of business firms. American Economic Review 1958, 48:607-617.
79. Sogorb-Mira F. How SME uniqueness affects capital structure: evidence from a 1994-1998 Spanish data panel. Small Business Economics 2005, 25:447-457.
80. Sorensen J., Stuart T. Aging, obsolescence and organisational innovation. Administrative Science Quarterly 2000, 45:81-112.
81. Stam E., Wennberg K. The roles of R&D in new firm growth. Small Business Economics 2009, 33:77-89.
82. Stinchcombe A. Social structure and organizations. Handbook of Organizations 1965, 142-193. Rand McNally, Chicago. J.G. March (Ed.).
83. Sutton J. Gibrat's legacy. Journal of Economic Literature 1997, 35:40-59.
84. Teruel-Carrizosa M. Gibrat's law and the learning process. Small Business Economics 2010, 34(4):355-373.
85. Vassilakis S. Learning-by-doing. The New Palgrave Dictionary of Economics 2008, Palgrave Macmillan. 2nd ed. S.N. Durlauf, L.E. Blume (Eds.).
86. Winker P. Causes and effects of financing constraints at the firm level. Small Business Economics 1999, 12:169-181.