We study empirically and analytically growth and fluctuation of firm size distribution. An empirical analysis is carried out on a US data set on firm size, with emphasis on one-time distribution as well as growth-rate probability distribution. Both Pareto’s law and Gibrat’s law are often used to study firm size distribution. Their theoretical relationship is discussed, and it is shown how they ...

The Pareto-like tail of the size distribution of firms can arise from random growth of productivity or stochastic accumulation of capital. If the shocks that give rise to firm growth are perfectly correlated within a firm, then the growth rates of small and large firms are equally volatile, contrary to what is found in the data. If firm growth is the result of many independent shocks within a f...

Firm growth is one of the most utilized measures of firm performance in academic literature, and especially in entrepreneurship research it is given great importance. Resources and growth orientation are important determinants of firm growth, and thus they have been targeted by several studies. Both resources and growth orientation have strong theoretical backgrounds and have obtained empirical...

Emergence of the tent shape-distribution of the growth rates 55 3.2.6 Dependence of the average growth rate on the firm size 58 3.2.7 Size-variance relationship 60 3.2.8 Qualifications of the results 63 i ii Contents 3.3 A generalized GPGM allowing for stable firm size and firm growth rate distributions 63 3.3.1 Implications for the growth process at the level of units 64 3.3.2 Implications for...

Credit has been found to be a catalyst for economic growth, as it spurs investment, enhances productivity, allows costs to be spread out over time, improves resource allocation, and enables investors to cope better with macroeconomic volatility. Most studies focus on the relationship between financial development and growth at the country level, while few analyze the relationship at the firm le...

The aim of this paper is to analyze the effect of entrepreneurial experience on firm growth. According to the human capital theory, individuals who have higher ‘human capital’ are more successful than others. Entrepreneurial experience is a kind of human capital and, therefore, should affect firm performance positively. In reality, however, not all types of experience indicate enhanced knowledg...

Credit has been found to be a catalyst for economic growth, as it spurs investment, enhances productivity, allows costs to be spread out over time, improves resource allocation, and enables investors to cope better with macroeconomic volatility. Most studies focus on the relationship between financial development and growth at the country level, while few analyze the relationship at the firm le...