Like milk or wine: Does firm performance improve with age?

Arbeitspapier

Our empirical literature review shows that little is known about how firm performance changes with age, presumably because of the paucity of data on firm age. For Spanish manufacturing firms, we analyse the firm performance related to firm age between 1998 and 2006. We find evidence that firms improve with age, because ageing firms are observed to have steadily increasing levels of productivity, higher profits, larger size, lower debt ratios, and higher equity ratios. Furthermore, older firms are better able to convert sales growth into subsequent growth of profits and productivity. On the other hand, we also found evidence that firm performance deteriorates with age. Older firms have lower expected growth rates of sales, profits and productivity, they have lower profitability levels (when other variables such as size are controlled for), and also that they appear to be less capable to convert employment growth into growth of sales, profits and productivity.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Papers on Economics and Evolution ; No. 1006

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Performance: Size, Diversification, and Scope ; Firm Objectives, Organization, and Behavior: General
• Thema: firm age ; firm growth ; LAD ; financial structure ; vector autoregression ; Unternehmensentwicklung ; Lebenszyklus ; Unternehmenswachstum ; Kapitalstruktur ; Schätzung ; Verarbeitendes Gewerbe ; Spanien

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Coad, Alex ; Segarra, Agusti ; Teruel, Mercedes
• Ereignis: Veröffentlichung
• (wer): Max Planck Institute of Economics
• (wo): Jena
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/57550
• URN: urn:nbn:de:gbv:27-20110628-131313-1
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ