Are there non-linearities between SME growth and its determinants? A quantile approach
AbstractThis article uses quantile regressions to study the relationship between the growth of Portuguese small and medium enterprises (SMEs) and its determinants. To control a sample selection bias, we use a two-step estimation. In the first stage, we verified that past growth, size, age, R&D intensity, and cash flow are important determinants for the survival of Portuguese SMEs. Then, after controlling for possible bias of data, we now find that relationships between determinants and growth in Portuguese SMEs present significant non-linearities over growth distribution: (i) Gibrat's Law cannot be rejected in the context of reductions in the size of Portuguese SMEs, but is rejected when company size increases; (ii) debt and R&D intensity are restrictive determinants of Portuguese SME growth when there is reduction in size, being determinants promoting growth in the case of increased size; (iii) age is a restrictive factor of Portuguese SME growth only when there is an increase in size; and (iv) cash flow, although a determinant promoting Portuguese SME growth regardless of the level of growth, takes on greater importance when there is a reduction in size. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 19 (2010)
Issue (Month): 4 (August)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://icc.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2013.
"Like milk or wine: Does firm performance improve with age?,"
Structural Change and Economic Dynamics,
Elsevier, vol. 24(C), pages 173-189.
- Alex Coad & AgustÃ Segarra & Mercedes Teruel, 2010. "Like milk or wine: Does firm performance improve with age?," Papers on Economics and Evolution 2010-06, Max Planck Institute of Economics, Evolutionary Economics Group.
- Coad, Alex & Segarra Blasco, Agustí & Teruel Carrizosa, Mercedes, 2010. "Like milk or wine: Does firm performance improve with age?," Working Papers 2072/179572, Universitat Rovira i Virgili, Department of Economics.
- Alex Coad & Agustí Segarra & Mercedes Teruel, 2010. "Like milk or wine: Does firm performance improve with age?," Working Papers XREAP2010-10, Xarxa de Referència en Economia Aplicada (XREAP), revised Sep 2010.
- Filipe Silva & Carlos Carreira, 2012.
"Measuring Firms' Financial Constraints: A Rough Guide,"
Faculdade de Economia, Universidade de Coimbra, issue 36, pages 23-46, December.
- Filipe Silva & Carlos Carreira, 2012. "Measuring Firms' Financial Constraints: A Rough Guide," GEMF Working Papers 2012-14, GEMF - Faculdade de Economia, Universidade de Coimbra.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.