Firm Size and the Risk/Return Trade-off
The topic of firm size and performance continues to spark the interest of researchers and policy-makers. Small and medium-sized enterprises receive much of the attention, as they have the potential to grow significantly. However, compared with their larger counterparts, these firms are more likely to fail and are therefore riskier. Is risk important in explaining differences in profitability across firm size classes? This study uses a longitudinal firm-level dataset to examine determinants of profitability by firm size, with an emphasis on risk, or the volatility in rates of return. It builds on previous research that found firms with 10 to 20 employees tend to be the most profitable.
|Date of creation:||19 Dec 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.statcan.gc.ca
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:stc:stcp5e:2013087e. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Brown)
If references are entirely missing, you can add them using this form.