Cargando…
One swallow does not make a summer: episodes and persistence in high growth
This paper analyzes firms’ episodes (spells) of high growth (HG) using a sample of Spanish manufacturing firms observed over two decades. The use of duration models allows us to investigate the following: (i) the probability of experiencing HG episodes, (ii) persistence in HG, and (iii) the determin...
Autores principales: | , , |
---|---|
Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer US
2021
|
Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7808929/ http://dx.doi.org/10.1007/s11187-020-00443-8 |
_version_ | 1783637007471214592 |
---|---|
author | Esteve-Pérez, Silviano Pieri, Fabio Rodriguez, Diego |
author_facet | Esteve-Pérez, Silviano Pieri, Fabio Rodriguez, Diego |
author_sort | Esteve-Pérez, Silviano |
collection | PubMed |
description | This paper analyzes firms’ episodes (spells) of high growth (HG) using a sample of Spanish manufacturing firms observed over two decades. The use of duration models allows us to investigate the following: (i) the probability of experiencing HG episodes, (ii) persistence in HG, and (iii) the determinants of the transitions in and out of the HG state and whether their impact varies over the business cycle. We find that about half of the firms experience at least one HG episode, but they seldom experience more than one. Moreover, high-growth status is rarely repeated due to high first-year selection. Yet, in subsequent years beyond the first one, the hazard rate from HG status falls substantially. These results suggest an “episodic” nature of HG and further allow us to identify two groups of firms characterized by the following: (i) (relatively) long HG spells and short no high-growth (NHG) spells and (ii) short HG spells and long NHG spells. In addition, some firm and market (demand) characteristics increase the probability of becoming an HG firm and enhancing HG persistence. Finally, during the downturn, the role of younger age and smaller size in explaining HG decreases. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s11187-020-00443-8. |
format | Online Article Text |
id | pubmed-7808929 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2021 |
publisher | Springer US |
record_format | MEDLINE/PubMed |
spelling | pubmed-78089292021-01-15 One swallow does not make a summer: episodes and persistence in high growth Esteve-Pérez, Silviano Pieri, Fabio Rodriguez, Diego Small Bus Econ Article This paper analyzes firms’ episodes (spells) of high growth (HG) using a sample of Spanish manufacturing firms observed over two decades. The use of duration models allows us to investigate the following: (i) the probability of experiencing HG episodes, (ii) persistence in HG, and (iii) the determinants of the transitions in and out of the HG state and whether their impact varies over the business cycle. We find that about half of the firms experience at least one HG episode, but they seldom experience more than one. Moreover, high-growth status is rarely repeated due to high first-year selection. Yet, in subsequent years beyond the first one, the hazard rate from HG status falls substantially. These results suggest an “episodic” nature of HG and further allow us to identify two groups of firms characterized by the following: (i) (relatively) long HG spells and short no high-growth (NHG) spells and (ii) short HG spells and long NHG spells. In addition, some firm and market (demand) characteristics increase the probability of becoming an HG firm and enhancing HG persistence. Finally, during the downturn, the role of younger age and smaller size in explaining HG decreases. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s11187-020-00443-8. Springer US 2021-01-15 2022 /pmc/articles/PMC7808929/ http://dx.doi.org/10.1007/s11187-020-00443-8 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC part of Springer Nature 2020 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Article Esteve-Pérez, Silviano Pieri, Fabio Rodriguez, Diego One swallow does not make a summer: episodes and persistence in high growth |
title | One swallow does not make a summer: episodes and persistence in high growth |
title_full | One swallow does not make a summer: episodes and persistence in high growth |
title_fullStr | One swallow does not make a summer: episodes and persistence in high growth |
title_full_unstemmed | One swallow does not make a summer: episodes and persistence in high growth |
title_short | One swallow does not make a summer: episodes and persistence in high growth |
title_sort | one swallow does not make a summer: episodes and persistence in high growth |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7808929/ http://dx.doi.org/10.1007/s11187-020-00443-8 |
work_keys_str_mv | AT esteveperezsilviano oneswallowdoesnotmakeasummerepisodesandpersistenceinhighgrowth AT pierifabio oneswallowdoesnotmakeasummerepisodesandpersistenceinhighgrowth AT rodriguezdiego oneswallowdoesnotmakeasummerepisodesandpersistenceinhighgrowth |