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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.

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Bibliographic Info

Paper provided by The Ratio Institute in its series Ratio Working Papers with number 147.

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Length: 24 pages
Date of creation: 01 Feb 2010
Date of revision: 29 Sep 2010
Handle: RePEc:hhs:ratioi:0147

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Keywords: high-growth firms; gazelles; firm growth; firm ownership; family firms; rapid firm growth;

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References

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  1. Davidsson, Per & Henrekson, Magnus, 2002. " Determinants of the Prevalence of Start-Ups and High-Growth Firms," Small Business Economics, Springer, vol. 19(2), pages 81-104, September.
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  4. Henrekson, Magnus & Johansson, Dan, 2008. "Competencies and Institutions Fostering High-growth Firms," Ratio Working Papers 123, The Ratio Institute.
  5. Paul Schreyer, 2000. "High-Growth Firms and Employment," OECD Science, Technology and Industry Working Papers 2000/3, OECD Publishing.
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  8. Magnus Henrekson & Dan Johansson, 2010. "Gazelles as job creators: a survey and interpretation of the evidence," Small Business Economics, Springer, vol. 35(2), pages 227-244, September.
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  13. Claessens, Stijn & Djankov, Simeon & Lang, Larry H. P., 2000. "The separation of ownership and control in East Asian Corporations," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 81-112.
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Citations

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Cited by:
  1. Patrícia Bogas & Natália Barbosa, 2013. "High-Growth Firms: What is the Impact of Region-Specific Characteristics?," NIPE Working Papers 19/2013, NIPE - Universidade do Minho.
  2. Anders Bornhäll & Sven-Olov Daunfeldt & Niklas Rudholm, 2013. "Sleeping Gazelles: High profits but no growth," SPRU Working Paper Series 2013-10, SPRU - Science and Technology Policy Research, University of Sussex.
  3. Daunfeldt, Sven-Olov & Elert, Niklas & Johansson, Dan, 2010. "The economic contribution of high-growth firms: Do definitions matter?," HUI Working Papers 35, HUI Research.
  4. 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.

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