On the Autocorrelation of Growth Rates

By Alex Coad, Werner Hölzl. 2009

154 citations recorded by the source corpus.

This paper studies the serial autocorrelation of annual growth rates in employment for selected Austrian service industries over a 30-year period using quantile regression techniques. The autocorrelation of growth rates provides important information on firms growth processes. We find that the growth patterns of micro firms are strikingly different from the growth patterns of small, medium-sized and larger firms. First, we do find a positive dependency of growth on size for growing micro firms, while this relationship is negative for the other size groups. Second, growing micro firms are subject to negative autocorrelation of annual growth rates making sustained growth a very rate occurrence, while larger growing firms usually display a positive autocorrelation suggesting that high growth episodes of larger firms stretch over a longer time horizon. This indicates that the growth of micro firms in particular is characterized by a rather lumpy growth profile. Furthermore, we find that the autocorrelation patterns are asymmetric with regard to decline and growth.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/536e1f08533cd6c0226bc8565d89831bbbfbccf2

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In Economics and Econometrics

Citations in the corpus

High-growth firms: Introduction to the special section (2014, methodology): “Coad (2007) and Coad and Hölzl (2009) used quantile regression techniques to analyze whether persistence was affected by firm size and firm growth.”
Firm Growth: Empirical Analysis (2010, unknown): “Indeed, small ﬁrms that grew very fast in the previous period are particularly unlikely to repeat this growth performance (Coad, 2007a; Coad and H¨olzl, 2009).”
The Economic Contribution of High-Growth Firms: Do Policy Implications Depend on the Choice of Growth Indicator? (2014, result): “The results regarding size are firmly established in previous research on firm growth in general and on HGFs (Delmar 1997; Delmar and Davidsson 1998; Delmar et al. 2003; Coad and Hölzl 2009; Shepherd and Wiklund 2009).”
On the comparative performance of socially responsible and Islamic mutual funds (2014, methodology): “The main advantage of using quantile regression in the context of evaluating the determinants of mutual funds’ efficiency is that, as indicated by Coad and Hölzl (2009), we know that the standard least-squares assumption of normally distributed errors does not hold for our data because the location…”
Are high-growth firms one-hit wonders? Evidence from Sweden (2015, methodology): “Service firms have only recently been studied in detail (Coad and Hölzl, 2009; Oliveira and Fortunato, 2008; Teruel-Carrizosa, 2006; Goddard et al, 2004; Vander Vennet, 2001; Tschoegl, 1983), and the results have also been mixed.”