One swallow does not make a summer: episodes and persistence in high growth

Small Business Economics - Tập 58 - Trang 1517-1544 - 2021
Silviano Esteve-Pérez1, Fabio Pieri2, Diego Rodriguez3
1Department of Applied Economics II, Universitat de Valencia, Valencia, Spain
2Department of Economics and Management, University of Trento, Trento, Italy
3Department of Applied Economics, Universidad Complutense de Madrid, Madrid, Spain

Tóm tắt

This paper analyzes firms’ episodes (spells) of high growth (HG) using a sample of Spanish manufacturing firms observed over two decades. The use of duration models allows us to investigate the following: (i) the probability of experiencing HG episodes, (ii) persistence in HG, and (iii) the determinants of the transitions in and out of the HG state and whether their impact varies over the business cycle. We find that about half of the firms experience at least one HG episode, but they seldom experience more than one. Moreover, high-growth status is rarely repeated due to high first-year selection. Yet, in subsequent years beyond the first one, the hazard rate from HG status falls substantially. These results suggest an “episodic” nature of HG and further allow us to identify two groups of firms characterized by the following: (i) (relatively) long HG spells and short no high-growth (NHG) spells and (ii) short HG spells and long NHG spells. In addition, some firm and market (demand) characteristics increase the probability of becoming an HG firm and enhancing HG persistence. Finally, during the downturn, the role of younger age and smaller size in explaining HG decreases.

Tài liệu tham khảo

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