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Ownership and High-Growth Firms

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  • Bjuggren, Carl Magnus

    (Ratio)

  • Daunfeldt, Sven-Olov

    (Ratio)

  • Johansson, Dan

    (Ratio)

Abstract

Empirical studies demonstrate that most net job-growth originates from a small number of high-growth firms (HGFs). The purpose of this paper is to analyze whether firm ownership – family, or private non-family – matters for being a HGF, using data covering all firms in Sweden during 1993-2006. Firm growth is measured in terms of absolute employment growth, relative employment growth and as a combination of absolute and relative employment growth (the so-called Birch-index). We find that family ownership decreases the probability of exhibiting high growth. Changing ownership from family to private non family increases the probability of being a HGF, whereas a change from private non-family to family ownership decreases the probability of being a HGF. The results are robust, irrespective of measurement of firm growth, suggesting that ownership and changes in ownership are important determinants of rapid firm growth.

Suggested Citation

  • Bjuggren, Carl Magnus & Daunfeldt, Sven-Olov & Johansson, Dan, 2010. "Ownership and High-Growth Firms," Ratio Working Papers 147, The Ratio Institute, revised 29 Sep 2010.
    • Handle: RePEc:hhs:ratioi:0147
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    References listed on IDEAS

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    Cited by:

    1. Daunfeldt, Sven-Olov & Elert, Niklas & Johansson, Dan, 2010. "The Economic Contribution of High-Growth Firms: Do Definitions Matter?," Ratio Working Papers 151, The Ratio Institute.
    2. Halvarsson, Daniel, 2013. "Identifying High-Growth Firms," Ratio Working Papers 215, The Ratio Institute.
    3. Patrícia Bogas & Natália Barbosa, 2015. "High-Growth Firms: What Is the Impact of Region-Specific Characteristics?," International Studies in Entrepreneurship, in: Rui Baptista & João Leitão (ed.), Entrepreneurship, Human Capital, and Regional Development, edition 127, chapter 0, pages 295-308, Springer.
    4. Mulalo Mamburu, 2017. "Defining high-growth firms in South Africa," WIDER Working Paper Series wp-2017-107, World Institute for Development Economic Research (UNU-WIDER).
    5. José Miguel Giner & María Jesús Santa-María & Antonio Fuster, 2017. "High-growth firms: does location matter?," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 75-96, March.
    6. Alessandro Arrighetti & Andrea Lasagni, 2013. "Assessing the Determinants of High-Growth Manufacturing Firms in Italy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 20(2), pages 245-267, July.
    7. Fogel, Kathy S. & Lee, Kevin K. & Lee, Wayne Y. & Palmberg, Johanna, 2013. "Foreign Investors as Change Agents: The Swedish Firm Experience," Working Paper Series in Economics and Institutions of Innovation 311, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    8. Florian Leon, 2019. "The elusive quest for high- growth firms in Africa: The (lack of) growth persistence in Senegal," Working Papers hal-02493326, HAL.
    9. Anders Bornhäll & Sven-Olov Daunfeldt & Niklas Rudholm, 2013. "Sleeping Gazelles: High profits but no growth," SPRU Working Paper Series 2013-10, SPRU - Science Policy Research Unit, University of Sussex Business School.
    10. Kovács, Olivér, 2020. "Gazellák az iparpolitika tükrében, I [Gazelles and industrial policy, Part 1]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 54-87.
    11. Maks Tajnikar & Nina Ponikvar & Petra Došenovič Bonča, 2016. "Characteristics Of Firms With Different Types Of Growth: The Case Of Slovenia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 61(208), pages 27-48, January -.
    12. Mulalo Mamburu, 2017. "Defining high-growth firms in South Africa," WIDER Working Paper Series 107, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    high-growth firms; gazelles; firm growth; firm ownership; family firms; rapid firm growth;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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