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The Size and Growth of Firms

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  • Singh, Ajit
  • Whittington, Geoffrey

Abstract

This paper is a sequel to the analysis of the growth process of firms presented in Chapters 4 and 5 of our book Growth, Profitability and Valuation. The relationship between size and growth of firms is explored using a more comprehensive set of data than was used in the book. In particular, the book was based on data relating to individual quoted companies in the UK in only three large industries, whereas, in this paper, we extend the analysis to cover all major industrial groups in manufacturing, construction and distribution. This paper explores the relationship between size and growth of firms, and particularly stochastic models based on the Law of Proportionate Effect or Gibrat's Law.

Suggested Citation

  • Singh, Ajit & Whittington, Geoffrey, 1975. "The Size and Growth of Firms," MPRA Paper 51715, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51715
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    References listed on IDEAS

    as
    1. Robin Marris & Adrian Wood (ed.), 1971. "The Corporate Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01110-0.
    2. Stephen Hymer & Peter Pashigian, 1962. "Firm Size and Rate of Growth," Journal of Political Economy, University of Chicago Press, vol. 70(6), pages 556-556.
    3. J. M. Samuels, 1965. "Size and The Growth of Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(2), pages 105-112.
    4. Jesse W. Markham, 1955. "Survey of the Evidence and Findings on Mergers," NBER Chapters, in: Business Concentration and Price Policy, pages 141-212, National Bureau of Economic Research, Inc.
    5. anonymous, 1971. "Corporate financing in 1970," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jan, pages 1-8.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Gibrat's Law; Law of Proportionate Effect; Size and Growth of Firms;
    All these keywords.

    JEL classification:

    • D0 - Microeconomics - - General

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