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A Closer Look at Serial Growth Rate Correlation

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  • Alex Coad

Abstract

Serial correlation in annual growth rates carries a lot of information on growth processes: it allows us to directly observe firm performance as well as to test theories. Using a 7-year balanced panel of 10000 French manufacturing firms, we observe that small firms typically are subject to negative correlation of annual growth rates, whereas larger firms display positive correlation. Furthermore, we find that those small firms that experience extreme positive or negative growth in any one year are unlikely to repeat this performance in the following year
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  • Alex Coad, 2007. "A Closer Look at Serial Growth Rate Correlation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 31(1), pages 69-82, August.
    • Handle: RePEc:kap:revind:v:31:y:2007:i:1:p:69-82
    DOI: 10.1007/s11151-007-9135-y
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    11. Giulio Bottazzi & Angelo Secchi, 2003. "Common Properties and Sectoral Specificities in the Dynamics of U.S. Manufacturing Companies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3_4), pages 217-232, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Serial correlation; Firm growth; Quantile regression; French manufacturing; Fast-growth firms; L11; L25;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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