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Age and firm growth. Evidence from three European countries

Author

Listed:
  • Giorgio Barba Navaretti

    (University of Milan and Centro Studi Luca d’Agliano)

  • Davide Castellani

    (University of Perugia and Centro Studi Luca d’Agliano)

  • Fabio Pieri

    (Universitat de València)

Abstract

This paper provides new insights on the firm age and growth nexus along the entire distribution of (positive and negative) growth rates. Using data from the EFIGE survey, and adopting a quantile regression approach we uncover evidence for a sample of French, Italian and Spanish manufacturing firms in the period from 2001 to 2008. After controlling for several firms’ characteristics, country and sector specificities we find that: (i) young firms grow faster than old firms, especially in the highest growth quintiles (ii) young firms face the same probability of declining than their older counterparts; (iii) high growth is associated with younger CEOs and other attributes which capture the attitude of firm toward growth and change, i.e. the number of employees involved in R&D activities and the number of graduate employees; (iv) results are robust to the inclusion of other firms’ characteristics like labor productivity, capital intensity, and the financial structure. Overall, our results are consistent with several theoretical arguments, like love for risk and learning.

Suggested Citation

  • Giorgio Barba Navaretti & Davide Castellani & Fabio Pieri, 2012. "Age and firm growth. Evidence from three European countries," Working Papers 1217, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1217
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    More about this item

    Keywords

    firm growth; age; quantile regression;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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