Abstract
We show that the stylized facts of the Firm Size Distribution (FSD) by age cohorts, as shown in Cabral and Mata (2003), bind within 4-digit manufacturing industries in the UK and Belgium. This paper investigates whether the time to build a portfolio of products from inter-industry diversification is a mechanism that helps explain the stylized facts of the FSD by age cohorts. We find that the degree of inter-industry diversification has a separate impact on firm size when controlling for age, amongst other factors. Using the techniques of Cabral and Mata, we find that inter-industry diversification does shift the FSD to the right, and more so in older age groups.
Original language | English |
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Pages (from-to) | 65-82 |
Number of pages | 18 |
Journal | Review of Industrial Organization |
Volume | 37 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2010 |
Externally published | Yes |
Keywords
- Firm age
- Firm size distribution
- Inter-industry diversification
ASJC Scopus subject areas
- Economics and Econometrics
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation