scholarly journals The Relationship Between Firm Size and Firm Growth: The Case of the Czech Republic

2015 ◽  
Vol 63 (5) ◽  
pp. 1639-1644 ◽  
Author(s):  
Roman Fiala ◽  
Veronika Hedija
Keyword(s):  
Czech Republic ◽  
Firm Size ◽  
Small Firms ◽  
Firm Growth ◽  
Autoregressive Process ◽  
The Czech Republic ◽  
Gibrat’S Law ◽  
First Order ◽  
Gibrat's Law ◽  
The Relationship

This paper deals with the investigation of the relationship between firm size and firm in the Czech Republic during 2007–2012. The study aims to examine to what extent the confirmation or rejection of Gibrat’s law depends on the indicator of firm size. For measuring firm size we use three indicators: revenues, number of employees and total assets. The study uses data collected from the database Albertina CZ Gold Edition. Final dataset includes the data about more than 35,000 firms. The validity of Gibrat’s law was tested with the help of linear regression model with first-order autoregressive process. Gibrat’s law is rejected for all three indicators of firm size. Hence, the selected indicator of firm size is not proved to be important factor in verification of Gibrat’s law validity. It is also found out that the small firms in profit industries (A-N according to CZ-NACE classification) grow faster than their larger counterparts in the Czech Republic.

Growth and Firm Size Distribution

2016 ◽  
Vol 14 (2) ◽  
pp. 61-73
Author(s):  
Wei Zhang ◽  
Yan-Chun Zhu ◽  
Jian-Bo Wen ◽  
Yi-Jie Zhuang
Keyword(s):  
Size Distribution ◽  
Firm Size ◽  
Zipf’S Law ◽  
Growth Path ◽  
Firm Size Distribution ◽  
Zipf's Law ◽  
Gibrat’S Law ◽  
Gibrat's Law ◽  
Quantile Regression Method ◽  
The Relationship

Studies on the firm's size distribution (FSD) can set a good foundation to know about the growth path and mechanism of e-commerce firms. The purpose of this paper is to understand features of the China's listed e-commerce firms by testing Gibrat's law and Zipf's law within the Internet sectors. From a macroscopic perspective, with the approach of OLS estimation, Zipf's coefficient of the FSD is calculated to test whether Zipf's law holds. From a microscopic perspective, the relationship between e-commerce firm size and growth is explored by quantile regression method. The results indicate that from 2005 to 2014, Zipf's law cannot be rejected, with the relationship changing over time, Gibrat's law holds partly. It implies that competition status among China's e-commerce firms becomes more stable.

Industrial Research and Firm Size, Survival, and Growth in American Manufacturing, 1921–1946: An Assessment

1983 ◽  
Vol 43 (4) ◽  
pp. 953-980 ◽  
Author(s):  
David C. Mowery
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Firm Growth ◽  
Industrial Research ◽  
Large Firms ◽  
Research Activity ◽  
Growth And Survival ◽  
Survival And Growth ◽  
The Impact ◽  
The Relationship

The literature on the development of American industrial research suggests that during the twentieth century large firms “dominated” industrial research, and reaped the majority of the benefits from such activity. This paper utilizes new data to analyze both the relationship between firm size and research employment and the impact of research activity on firm growth and survival during 1921–1946. The results suggest that large firms were no more research-intensive than were small firms during the 1921–1946 period. Research activity significantly enhanced the probability of firms' survival among the ranks of the 200 largest manufacturing firms during 1921–1946. Research employment also improved the growth performance of both large and small firms during 1933–1946.

scholarly journals The Role of Innovation in Small and Medium-Sized Family Firms: A Literature Review

2021 ◽  
Vol 9 (5) ◽  
pp. 102-120
Author(s):  
Ondrej Zizlavsky ◽  
Nikola Janickova
Keyword(s):  
Czech Republic ◽  
Firm Growth ◽  
Family Firms ◽  
Family Firm ◽  
Future Research ◽  
Value Drivers ◽  
The Czech Republic ◽  
Definition Of ◽  
The Relationship

This article builds on existing family business research conducted worldwide and embeds the research results in the Czech context to portray the Czech Republic as a critically important context for extending our knowledge on important family firms’ topics. In this article, we present a systematic review and integration of 69 articles published in peer-reviewed journals by Elsevier, Emerald, Wiley and others from 2015 to 2021 in order to answer two research questions: what is the role of innovation in SME family firms and what drives the innovation in family firms? Specifically, the content of the article discusses the new definition of family firm in the Czech Republic; the relationship between innovation and family firm growth; and some contextual factors that might affect the innovations in the Czech SME family firms: ability and willingness paradox, socioemotional wealth, and familiness. The insights of this review are used to develop suggestions for future research in setting the value of family firm where innovation can play an essential role as one of the core value drivers.

scholarly journals Role of companies’ size in socio-economic development of regions in the Czech Republic

2019 ◽  
Vol 70 (6) ◽  
pp. 833-848
Author(s):  
Radka Redlichová ◽  
Gabriela Chmelíková ◽  
Ivana Blažková ◽  
Vojtěch Tamáš
Keyword(s):  
Economic Development ◽  
Czech Republic ◽  
Regional Development ◽  
Unemployment Rate ◽  
Small Firms ◽  
Size Structure ◽  
The Czech Republic ◽  
Socio Economic Development ◽  
The Relationship

The aim of this paper is to investigate socio-economic development drivers of NUTS 3 regions in the Czech Republic. The aim is fulfilled by examination of the relationship between one of the regional development factors – the companies’ size structure and the development of the region from both socio and economic views. We derive from the theory of diversification and prior empirical findings, and empirically test the role of companies’ size in regional development. We use a balanced dataset of 14 regions covering the years 2000 – 2016 that provides the information about regions’ socio-economic performance in terms of GDP and unemployment rate. We hypothesise that unemployment rate in the regions with higher share of small firms is less sensitive to the general trend of the whole economy. However, the higher share of small firms leads to improved regional GDP. Our findings confirm that small firms accelerate economic growth while playing a role of a social stabiliser in Czech regions. Our conclusions could help in designing the regional policy in the Czech Republic.

Do Firm Growth Models Work in Service Industries in Developing Economies? An Investigation of the Relationship Between Firms’ Growth, Size and Age

2021 ◽  
pp. 026010792198991
Author(s):  
Boby Chaitanya Villari ◽  
Balaji Subramanian ◽  
Piyush Kumar ◽  
Pradeep Kumar Hota
Keyword(s):  
Firm Growth ◽  
Developing Economies ◽  
Growth Models ◽  
Growth Patterns ◽  
Service Industries ◽  
Gibrat’S Law ◽  
Gibrat's Law ◽  
Manufacturing Sectors ◽  
Service Sectors ◽  
The Relationship

Growth models such as Gibrat’s law and Jovanovic’s theory that examine the relationship between the firms’ growth, age and size have either been tested on data from developed economies or from the manufacturing sectors in developing economies. This study checks the suitability of these models in service sectors in developing economies as service sectors have distinct characteristics and developing economies such as India are heavily dependent on this sector. The current study considers three major service sectors contributing to India’s economy vis-à-vis financial services, information technology and real estate for the period 2002–2005. We observed that during 2002–2005, India’s economy was stable without wide fluctuations in economic performance, such as gross domestic product, unemployment or inflation. These sectors not only had a significant impact on economic growth but also had comprehensive microeconomic data. Our results negate both Gibrat’s law and Jovanovic’s theory. We argue that service sectors which are knowledge-intensive will experience different growth patterns compared to manufacturing sectors. We find a definite and significant relationship between firms’ growth and their size and age. Also, we find concluding evidence that younger firms up to 10 years of age struggle a lot more than older firms in the Indian service sector. JEL: D20, D21, D22, D02

Using the Survivor Technique to Estimate Returns to Scale and Optimum Firm Size

2003 ◽  
Vol 3 (1) ◽  
Author(s):  
James N Giordano
Keyword(s):  
Size Distribution ◽  
Firm Size ◽  
Firm Growth ◽  
Returns To Scale ◽  
Gibrat’S Law ◽  
Individual Firm ◽  
Gibrat's Law ◽  
Alternative Measures

Abstract The survivor technique for estimating returns to scale and optimum firm size has generated a slow but steady literature since its 1958 pilot presentation by George Stigler. This article (1) integrates advances in its application into a complete demonstration of how the technique works, (2) distinguishes a survivor analysis from the related but different analyses of individual firm growth and size distribution as addressed, for example, by Gibrat's Law of Proportionate Effect, (3) surveys a few exemplary survivor analyses, highlighting their alternative measures of scale and survival, and (4) unifies the scattered discussion of criticisms and qualifications that surround the technique. Accordingly, this essay seeks to reposition the survivor technique as a viable statistical option for research on those industries which meet its criteria.

scholarly journals Gibrat’s law and Jovanovic’s learning theory

2018 ◽  
Vol 69 (3) ◽  
pp. 251-268
Author(s):  
Besnik A. Krasniqi ◽  
Saranda Lajqi
Keyword(s):  
Empirical Evidence ◽  
Learning Theory ◽  
Small Firms ◽  
Policy Implications ◽  
Gibrat’S Law ◽  
Post Conflict ◽  
Gibrat's Law ◽  
Age Model ◽  
Relationship Of ◽  
The Relationship

This article tests the validity of Gibrat’s Law and Jovanovic’s learning theory for growing small and medium-sized firms (SMEs) in post-conflict economy of Kosovo. Despite evolving body of evidence suggesting that Gibrat’s Law does not hold, there is a lack of empirical evidence from transitional and post-conflict economies. This study provides econometric analysis of the relationship of age, size and growth of SMEs. The article is based on pooled SME surveys conducted by Riinvest Institute (2004- 2006). Econometric findings show that Gibrat’s Law does not hold in all model specifications while support the conventional Jovanovic’s learning theory based on growth-size age model suggesting important policy implications for promotion of small firms in Kosovo.

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