Aggregate fluctuations and the cross-sectional dynamics of firm growth

Sean  Holly; Ivan  Petrella; Emiliano Santoro

doi:10.1111/j.1467-985X.2012.01047.x

Aggregate fluctuations and the cross-sectional dynamics of firm growth

Sean Holly, Ivan Petrella, Emiliano Santoro

Økonomisk Institut

7 Citationer (Scopus)

Abstract

The paper explores time variation in the distribution of firm level growth of total sales. Three novel results are reported. First, firms on the left-hand side of the distribution, i.e. firms that are growing more slowly or declining, are typically more responsive to aggregate shocks than those on the right-hand side of the distribution. Second, trending behaviour in the volatility of firm growth is predominantly driven by increasing dispersion in the growth of highly performing firms. Third, shifts in the probability mass on either side of the mode may act as important propagators of business fluctuations. Financial frictions emerge as a mechanism that is capable of accounting for these facts.

Originalsprog	Engelsk
Tidsskrift	Journal of the Royal Statistical Society, Series A (Statistics in Society)
Vol/bind	176
Udgave nummer	2
Sider (fra-til)	459-479
Antal sider	21
ISSN	0964-1998
DOI	https://doi.org/10.1111/j.1467-985X.2012.01047.x
Status	Udgivet - feb. 2013

Emneord

Det Samfundsvidenskabelige Fakultet
Asymmetric exponential power distribution
Business cycle
Corporate growth

Adgang til dokumentet

10.1111/j.1467-985X.2012.01047.x

Citationsformater

@article{c1c6529cbab0402f82a9435ae47249aa,

title = "Aggregate fluctuations and the cross-sectional dynamics of firm growth",

abstract = "The paper explores time variation in the distribution of firm level growth of total sales. Three novel results are reported. First, firms on the left-hand side of the distribution, i.e. firms that are growing more slowly or declining, are typically more responsive to aggregate shocks than those on the right-hand side of the distribution. Second, trending behaviour in the volatility of firm growth is predominantly driven by increasing dispersion in the growth of highly performing firms. Third, shifts in the probability mass on either side of the mode may act as important propagators of business fluctuations. Financial frictions emerge as a mechanism that is capable of accounting for these facts.",

keywords = "Faculty of Social Sciences, Asymmetric exponential power distribution, Business cycle, Corporate growth, Asymmetric exponential power distribution, Business cycle, Corporate growth",

author = "Sean Holly and Ivan Petrella and Emiliano Santoro",

year = "2013",

month = feb,

doi = "10.1111/j.1467-985X.2012.01047.x",

language = "English",

volume = "176",

pages = "459--479",

journal = "Journal of the Royal Statistical Society, Series A (Statistics in Society)",

issn = "0964-1998",

publisher = "Wiley",

number = "2",

}

TY - JOUR

T1 - Aggregate fluctuations and the cross-sectional dynamics of firm growth

AU - Holly, Sean

AU - Petrella, Ivan

AU - Santoro, Emiliano

PY - 2013/2

Y1 - 2013/2

N2 - The paper explores time variation in the distribution of firm level growth of total sales. Three novel results are reported. First, firms on the left-hand side of the distribution, i.e. firms that are growing more slowly or declining, are typically more responsive to aggregate shocks than those on the right-hand side of the distribution. Second, trending behaviour in the volatility of firm growth is predominantly driven by increasing dispersion in the growth of highly performing firms. Third, shifts in the probability mass on either side of the mode may act as important propagators of business fluctuations. Financial frictions emerge as a mechanism that is capable of accounting for these facts.

AB - The paper explores time variation in the distribution of firm level growth of total sales. Three novel results are reported. First, firms on the left-hand side of the distribution, i.e. firms that are growing more slowly or declining, are typically more responsive to aggregate shocks than those on the right-hand side of the distribution. Second, trending behaviour in the volatility of firm growth is predominantly driven by increasing dispersion in the growth of highly performing firms. Third, shifts in the probability mass on either side of the mode may act as important propagators of business fluctuations. Financial frictions emerge as a mechanism that is capable of accounting for these facts.

KW - Faculty of Social Sciences

KW - Asymmetric exponential power distribution

KW - Business cycle

KW - Corporate growth

KW - Asymmetric exponential power distribution

KW - Business cycle

KW - Corporate growth

U2 - 10.1111/j.1467-985X.2012.01047.x

DO - 10.1111/j.1467-985X.2012.01047.x

M3 - Journal article

SN - 0964-1998

VL - 176

SP - 459

EP - 479

JO - Journal of the Royal Statistical Society, Series A (Statistics in Society)

JF - Journal of the Royal Statistical Society, Series A (Statistics in Society)

IS - 2

ER -