On the Evolution of Firm Size Distributions

Angelini, Paolo; Generale, Andrea

doi:10.1257/aer.98.1.426

Cited by 443 publications

(189 citation statements)

References 25 publications

Supporting

Mentioning

171

Contrasting

Unclassified

Order By: Relevance

“…If this were the case, the limited access to external finance would constrain firm growth through the channel of insufficient investment. In this respect, the present study also contributes to the literature on financial constraints to firm growth (see, among the others Oliveira and Fortunato, 2006;Whited, 2006;Angelini and Generale, 2008;Bottazzi et al, forthcoming).…”

Section: Introductionsupporting

confidence: 54%

Dynamics of investment and firm performance: comparative evidence from manufacturing industries

2015

View full text Add to dashboard Cite

If the relation between investment and economic growth is well established in the macroeconomic literature, the existence of a similar link at the level of the firm has been challenged by empirical work. This paper investigates the channels linking investment and firm performance in the French and Italian manufacturing industries. It does so by putting forth a novel methodology to identify investment spikes that corrects for size dependence. While maintaining the desired properties of a spike measure, our chosen proxy retrieves the expected relation between investment and firm performance. Ex-ante, more efficient and fast growing firms display a higher probability to invest; in turn, after an investment spike has taken place the group of investing firms shows further gains in performance. Finally, expansionary investment episodes, as proxied by the opening of new plants, have a negative effect on profitability while they are associated with higher sales and employment levels.JEL codes: C14, D22, D24, D92, E22, L11, L23, L60

show abstract

Section: Introductionsupporting

confidence: 54%

Dynamics of investment and firm performance: comparative evidence from manufacturing industries

2015

View full text Add to dashboard Cite

show abstract

“…Meisenzahl (2011), Angelini, andGenerale (2008) and Kuntchev et al (2012) are among the studies that take this approach. Even though the response by the firm is not directly verifiable by the research, one should expect it to be, on average, a good, firsthand proxy for financial constraints.…”

Section: Second a Firm Is Financially Constrained If It Describes mentioning

confidence: 99%

Firm Size and Credit in Argentina

2013

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. Terms of use: Documents inThe unauthorized commercial use of Bank documents is prohibited and may be punishable under the Bank's policies and/or applicable laws. Copyright ©Inter-American Development Bank. This working paper may be reproduced for any non-commercial purpose. It may also be reproduced in any academic journal indexed by the American Economic Association's EconLit, with previous consent by the Inter-American Development Bank (IDB), provided that the IDB is credited and that the author(s) receive no income from the publication. Cataloging-in-Publication AbstractThe goal of this paper is to study the link between bank credit (and internal funding) and average firm size in Argentina. Besides the fact that economic growth tends to go hand in hand with larger firm size, the topic is of particular interest because of the severe credit crunch in Argentina in the aftermath of the 2001-2002 financial crisis. To this end, a novel three-digit industry-level dataset spanning the 2000-2010 period was constructed. The results confirm the expected positive impact of credit supply on average firm size. Furthermore, the study expands on common knowledge by testing the sensitivity of firm size to internal funding and the differential financing behavior of the primary and the manufacturing sector. The results do not seem to be driven by endogeneity bias.JEL classifications: D22, D23, G21, G32

show abstract

“…In addition, literature indicates that effect of financial constraint on firm growth varies across firms of different sizes and that the effect of financial constraint is stronger for smaller firms than large firms (Beck, 2007;Angelini & Generale, 2008;Kuntchev et al, 2012;Weder, 2005;Carpenter & Peterson, 2002;Oliveira & Fortunato, 2006) and Kumar & Francisco, 2005;Beck et al, 2005;Kuntchev et al, 2012). Similarly, Laeven (2003) shows that financial liberalisation reduces credit constraints for small firms and increases financial accessibility for large firms.…”

Section: Related Literaturementioning

confidence: 99%

Access to Credit and the Effect of Credit Constraints on the Performance of Manufacturing Firms in the East African Region: Micro Analysis

Buyinza¹,

Bbaale²

2013

IJEF

View full text Add to dashboard Cite

The study set out to investigate the factors influencing manufacturing firms' access to credit and the effect of credit constraints on firm performance in the East African Community (EAC) using the World Bank (2006) enterprise survey for 5 EAC countries. We employed simple probit, simple OLS, tobit, and a two-step probit models. Descriptively, the top five business constraints in order of severity include; electricity outages and costs, access to finance, high and volatile tax rates, corruption, and macroeconomic instability. The majority of firms within the EAC are credit constrained with only 37% of firms in the best performing sector (metal fabrications) having obtained a loan. Quantitatively, high performing firms, exporters, medium and large firms increase the probability of credit access. Findings indicate that having access to credit and a long loan duration increase firm performance, while increase in the annual interest rate reduces firm productivity. Governments in the region should tackle the business constraints rated as very severe. EAC governments should make credit access easier by lowering the annual interest rates and also negotiating for a longer pay back period for individuals in the business sector. Governments in the region should put specific attention on those sectors which are observed to have an extreme disadvantage in accessing finance.

show abstract

On the Evolution of Firm Size Distributions

Cited by 443 publications

References 25 publications

Dynamics of investment and firm performance: comparative evidence from manufacturing industries

Dynamics of investment and firm performance: comparative evidence from manufacturing industries

Firm Size and Credit in Argentina

Access to Credit and the Effect of Credit Constraints on the Performance of Manufacturing Firms in the East African Region: Micro Analysis

Contact Info

Product

Resources

About