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| Alex Coad |
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| ''Firm growth and scaling of growth rate variance in multiplant firms'' |
| ( 2008, Vol. 12 No.9 ) |
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| While Gibrat's Law assumes that growth rate variance is independent of size, empirical work has usually found a negative relationship between growth rate variance and firm growth. Using data on French manufacturing firms, we observe a relatively low, but statistically significant, negative relationship between firm size and growth rate variance. Furthermore, we observe that growth rate variance does not decrease monotonically the more plants a firm possesses, which is at odds with a number of theoretical models. |
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| Keywords: |
JEL: L2 - Firm Objectives, Organization, and Behavior: General
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| Manuscript Received : Dec 03 2007 | | Manuscript Accepted : Mar 12 2008 |
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