Does Size Matter in Firm Performance? Evidence from US Public Firms
Abstract
This paper reexamines the determinants of firm performance and, in particular, the role that firm size plays in profitability. A fixed-effects dynamic panel data model for over 7,000 US publicly-held firms during the period 1987-2006 provides evidence that profit rates are positively correlated with firm size in a non-linear manner, holding an array of firm- and industry-specific characteristics constant. In addition, industry-specific fixed effects play a negligible role in the presence of firm-specific fixed effects.Download Info
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Bibliographic Info
Article provided by Taylor and Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 16 (2009)
Issue (Month): 2 ()
Pages: 189-203
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Related research
Keywords: Profit Rates; Panel Data; Firm Size; Industry Effects; Firm Effects;References
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