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An Examination of the Relationship Between Firm Size, Growth and Liquidity in the Neuer Markt


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  • Elston, Julie Ann


With the increasing competitive importance of scientific innovations associated with the new economy it has become critical to understand the dynamics of its' firm growth during this early and potentially critical stage of development. This study analyses the relationship between firm size and growth for Neuer Markt firms from its inception in 1997 until 2000 Evidence supports the hypothesis that smaller firms on the Neuer Markt grew faster than larger firms. Further, by using an alternative specification for growth, this study provides evidence that liquidity constraints impact firm growth, even when controlling for firm size and age. Results further indicate that while smaller firms grew faster in the new economy, larger firms grew faster in the old economy, supporting the notion that smaller German firms may be playing a larger role than previously in bringing new technologies to the market place. -- Angesichts der zunehmenden Bedeutung wissenschaftlicher Innovationen , die mit der "neuen Ökonomie" in Verbindung stehen, ist es wichtig geworden, die Wachtumsdynamik dieser Firmen in einem frühen und möglicherweise entscheidenden Entwicklungsstadium zu verstehen. Dieses Papier untersucht für Firmen am Neuen Markt die Beziehung zwischen Größe und Wachstum in der Zeit von 1997 bis 2000. Es gibt Hinweise, dass kleinere Firmen am neuen Markt stärker wachsen als große Unternehmen.. Desweiteren gibt es nach dieser Studie Anzeichen, dass Liquiditätsbeschränkungen das Firmenwachstum beeinflussen, selbst wenn man für Größe und Alter kontrolliert. Weiterhin wird nahegelegt, dass kleine Firmen in der "neuen Ökonomie" schneller als große Firmen wuchsen, während in der "alten Ökonomie" das umgekehrte galt. Dies unterstützt die Vorstellung, dass kleinere deutsche Firmen heute möglicherweise eine größere Rolle als früher spielen, wenn es darum geht, neue Technologien auf den Markt zu bringen.

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Bibliographic Info

Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 1: Economic Studies with number 2002,15.

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Date of creation: 2002
Date of revision:
Handle: RePEc:zbw:bubdp1:4180

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Cited by:
  1. John Sell, 2006. "The Neuer Markt is Dead. Long Live the Neuer Markt!," International Advances in Economic Research, Springer, Springer, vol. 12(2), pages 191-202, May.
  2. Miroslav Mateev & Yanko Anastasov, 2010. "Determinants of small and medium sized fast growing enterprises in central and eastern Europe: a panel data analysis," Financial Theory and Practice, Institute of Public Finance, Institute of Public Finance, vol. 34(3), pages 269-295.
  3. Giorgio Fagiolo & Alessandra Luzzi, 2004. "Do Liquidity Constraints Matter in Explaining Firm Size and Growth? Some Evidence from the Italian Manufacturing Industry," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy 2004/08, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  4. Blandina Oliveira & Adelino Fortunato, 2005. "Firm Growth and Liquidity Constraints: A Dynamic Analysis," GEMF Working Papers 2005-07, GEMF - Faculdade de Economia, Universidade de Coimbra.
  5. Georgios Fotopoulos & Ioannis Giotopoulos, 2010. "Gibrat’s law and persistence of growth in Greek manufacturing," Small Business Economics, Springer, Springer, vol. 35(2), pages 191-202, September.
  6. Blandina Oliveira & Adelino Fortunato, 2008. "The dynamics of the growth of firms: evidence from the services sector," Empirica, Springer, Springer, vol. 35(3), pages 293-312, July.
  7. Yuji Honjo & Nobuyuki Harada, 2006. "SME Policy, Financial Structure and Firm Growth: Evidence From Japan," Small Business Economics, Springer, Springer, vol. 27(4), pages 289-300, December.


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