Persistence, Survival and Growth: A Closer Look at 20 Years of High-Growth Firms in Austria
The paper studies the persistence of the high-growth phenomenon in Austria using social security data for the years 1985 to 2007. The Eurostat-OECD definition is used to identify high-growth firms and a modified Birch Index to identify high-impact firms. Bringing the definitions to the data confirms that the two definitions lead to the selection of different firms. We use matching as non-parametric preprocessing and estimate survival, persistence and growth regression on balanced datasets. The results show that being a high-growth firm does not improve the likelihood of survival in future periods in excess of the size effect induced by the high-growth event. For persistence and high growth we find a high-growth firm treatment effect. For high-impact firms we find a significant treatment effect for survival, persistence and growth. High-impact firms show a much higher persistence than high-growth firms. The average growth rate after the high-growth episode is quite modest for both high-impact and high-growth firms. Policy implications of the findings are discussed.
|Date of creation:||21 Oct 2011|
|Contact details of provider:|| Postal: Arsenal Object 20, A-1030 Wien|
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Serguei Kaniovski & Michael Peneder, 2008. "Determinants of firm survival: a duration analysis using the generalized gamma distribution," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(1), pages 41-58, March.
- Harald Oberhofer, 2010.
"Firm Growth, European Industry Dynamics and Domestic Business Cycles,"
WIFO Working Papers
- Harald Oberhofer, 2012. "Firm Growth, European Industry Dynamics and Domestic Business Cycles," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(3), pages 316-337, 07.
- Harald Oberhofer, 2010. "Firm growth, European industry dynamics and domestic business cycles," FIW Working Paper series 055, FIW.
- Harald Oberhofer, 2009. "Firm growth, European industry dynamics and domestic business cycles," Working Papers 2009-18, Faculty of Economics and Statistics, University of Innsbruck.
- Daunfeldt, Sven-Olov & Elert, Niklas & Johansson, Dan, 2010.
"The economic contribution of high-growth firms: Do definitions matter?,"
HUI Working Papers
35, HUI Research.
- Daunfeldt, Sven-Olov & Elert, Niklas & Johansson, Dan, 2010. "The Economic Contribution of High-Growth Firms: Do Definitions Matter?," Ratio Working Papers 151, The Ratio Institute.
- Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996.
"Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts,"
Small Business Economics,
Springer, vol. 8(4), pages 297-315, August.
- Steven J. Davis & John Haltiwanger & Scott Schuh, 1993. "Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts," NBER Working Papers 4492, National Bureau of Economic Research, Inc.
- 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), pages 217-232, December.
- 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.
- Henrekson, Magnus & Johansson, Dan, 2008.
"Gazelles as Job Creators – A Survey and Interpretation of the Evidence,"
Ratio Working Papers
117, The Ratio Institute.
- Magnus Henrekson & Dan Johansson, 2010. "Gazelles as job creators: a survey and interpretation of the evidence," Small Business Economics, Springer, vol. 35(2), pages 227-244, September.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Working Paper Series 733, Research Institute of Industrial Economics.
- Francesca Lotti & Enrico Santarelli & Marco Vivarelli, 2003. "Does Gibrat's Law hold among young, small firms?," Journal of Evolutionary Economics, Springer, vol. 13(3), pages 213-235, August.
- Winter-Ebmer, Rudolf, 2003. "Benefit duration and unemployment entry: A quasi-experiment in Austria," European Economic Review, Elsevier, vol. 47(2), pages 259-273, April.
- Hall, Bronwyn H, 1987.
"The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 35(4), pages 583-606, June.
- Bronwyn H. Hall, 1986. "The Relationship Between Firm Size and Firm Growth in the U.S. Manufacturing Sector," NBER Working Papers 1965, National Bureau of Economic Research, Inc.
- Werner Holzl, 2005. "Tangible and intangible sunk costs and the entry and exit of firms in a small open economy: the case of Austria," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2429-2443.
- Simon Parker & David Storey & Arjen Witteloostuijn, 2010. "What happens to gazelles? The importance of dynamic management strategy," Small Business Economics, Springer, vol. 35(2), pages 203-226, September.
- Thomas Philippon & Nicolas Véron, 2008. "Financing Europe's fast movers," Policy Briefs 9, Bruegel.
- Pitelis, Christos & Teece, David, 2009. "The (new) nature and essence of the firm," MPRA Paper 24317, University Library of Munich, Germany.
- Hart, Peter E & Oulton, Nicholas, 1996. "Growth and Size of Firms," Economic Journal, Royal Economic Society, vol. 106(438), pages 1242-1252, September.
- Cabral, Luis, 1995. "Sunk Costs, Firm Size and Firm Growth," Journal of Industrial Economics, Wiley Blackwell, vol. 43(2), pages 161-172, June.
- James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
- Evans, David S., 1986.
"The Relationship Between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries,"
86-33, C.V. Starr Center for Applied Economics, New York University.
- Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 567-581, June.
- Alex Coad & Werner Hölzl, 2009. "On the Autocorrelation of Growth Rates," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 139-166, June.
- Alex Coad, 2006.
"A Closer Look at Serial Growth Rate Correlation,"
LEM Papers Series
2006/29, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2005. "Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 365-391, June.
- Matthias Almus, 2002. "What characterizes a fast-growing firm?," Applied Economics, Taylor & Francis Journals, vol. 34(12), pages 1497-1508.
When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2011:i:403. 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: (Ilse Schulz)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.