Skip to main content
Article thumbnail
Location of Repository

Do some firms persistently outperform?

By M. Capasso, E. Cefis and K. Frenken

Abstract

This study analyses persistence in growth rates of the entire population of Dutch\ud manufacturing firms. Previous literature on firm growth rates shows that extreme\ud growth events are likely to be negatively correlated over time. A rebound effect\ud following an extreme growth event questions the existence of persistent\ud outperformers, indicated by a positive correlation over time. By supplementing the\ud quantile regression analyses with transition probability matrices, our study shows\ud that ‘bouncing’ firms co-exist with persistent outperformers. This result is robust if\ud we exclude firms involved in acquisitions or spin offs. Differentiating among different\ud size classes, we find that the existence of persistent outperformers is especially\ud pronounced in micro firms. We interpret this finding as supporting the notion of a\ud Schumpeter Mark I regime, with small firms displaying strong heterogeneity in their\ud growth patterns, versus a Schumpeter Mark II regime, with large firms displaying\ud less heterogeneity of growth

Topics: Sociale Geografie & Planologie, Economie, firm growth, heterogeneity, persistence, transition probability matrices, quantile regression
Year: 2009
OAI identifier: oai:dspace.library.uu.nl:1874/36661
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://dspace.library.uu.nl:80... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.