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Age effects, leverage and firm growth

  • Huynh, Kim P.
  • Petrunia, Robert J.

Recent theories of firm dynamics emphasize the role of financial variables as determinants of firm growth. Empirically examining these relationships has been difficult, since there is a lack of financial data on the small, young, and private firms. Using a unique administrative data set, this paper considers the growth of new firms in Canadian manufacturing from a financial perspective. We find that financial factors, such as leverage and initial financial size, impact growth rates for new firms. Further, the inclusion of leverage has little impact on the economic significance of the conditional age and size relationships with firm growth.

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Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 34 (2010)
Issue (Month): 5 (May)
Pages: 1003-1013

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Handle: RePEc:eee:dyncon:v:34:y:2010:i:5:p:1003-1013
Contact details of provider: Web page: http://www.elsevier.com/locate/jedc

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