The Relationship Between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries
Year: 1987
Type: article
Abstract: This study uses a sample of all firms operating in 100 manufacturing industries to examine some aspects of firm dynamics. It finds that firm growth, the variability of firm growth, and the probability that a firm will fail decrease with firm age. It also finds that firm growth decreases at a diminishing rate with firm size even after controlling for the exit of slow-growing firms from the sample. Gibrat's Law therefore fails, although the severity of the failure decreases with firm size. Copyright 1987 by Blackwell Publishing Ltd.
Source: Journal of Industrial Economics
DOI: 10.2307/2098588
Author: David S. Evans
Language: English
Topic: Firm Innovation and Growth
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2052871325