Testing the validity of Gibrat’s law in the context of profitability performance

Fiala, Roman; Hedija, Veronika

doi:10.1080/1331677x.2019.1655656

Cited by 5 publications

(4 citation statements)

References 45 publications

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“…The possible explanation can be that the smaller firms tend to grow quickly as compare to their counterparts. The negative impact of size on firm sales growth is consistent with (Quader, 2017;Oliveira & Fortunato, 2017;Abuhommous, 2017;Hedija, 2017;Krasniqi & Lajgi, 2018;Arouri et al, 2018;Fiala & Hedija, 2019;Yang &Tsou, 2019;Mbulawa & Ogbenna, 2019;Bai et al, 2020;Lin & Wu, 2020).…”

Section: Volatility and Firm Growthsupporting

confidence: 62%

Impact of Volatility on Firm Sales Growth Some Insights from Pakistan

Rauf¹,

Rashid²

2021

BER

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This paper empirically investigates how firm level, industrial level, market level and macroeconomic volatilities influencePakistani non-financial firms’ sales growth. It also examines how interactions between different kinds of volatilities affect sales growth. The empirical analysis is carried out using unbalanced annual panel data set covering the period 1988-2017.The results indicate that although all types of volatilities assert negative impacts, the intensity of the impact is quite different across different volatilities. Macroeconomic volatility has the highest adverse impact followed by firm volatility. Unexpectedly, the results provide evidence that one type of volatility significantly reduces the adverse impact of other type of volatility. These findings imply that firms may design and implement more effective sales growth strategies in periods when they face more than on type of volatility.

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Section: Volatility and Firm Growthsupporting

confidence: 62%

Impact of Volatility on Firm Sales Growth Some Insights from Pakistan

Rauf¹,

Rashid²

2021

BER

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“…The relationship between firm growth rate and firm size has been investigated in theoretical-conceptual and applied economic literature. Santarelli, Klomp, and Thurik (2006), Nassar, Almsafir, and Al-Mahrouq (2014), and the most recently Fiala and Hedija (2019) provide a review of studies and a summary of their conclusions on the validity of Gibrat's law.…”

Section: Previous Researchmentioning

confidence: 99%

“…The previous empirical results in the literature on the validity of Gibrat's (1931) law are mixed (Audretsch, Klomp, Santarelli, & Thurik, 2004;Fiala & Hedija, 2019;Lunardi, Miccich e, Lillo, Mantegna, & Gallegati, 2014;Srhoj, Zupic, & Jakli c, 2018;Stam, 2010). The literature among the drivers that can affect the validity of Gibrat's law identifies different factors such as minimum efficient scale of production, type of ownership, industry uncertainty and ownership structure (Fiala & Hedija, 2019).…”

Section: Previous Researchmentioning

confidence: 99%

Testing the validity of Gibrat’s law for Slovenian farms: cross-sectional dependence and unit root tests

Bojnec

Fertő

2020

Economic Research-Ekonomska Istraživanja

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This paper studies the validity of Gibrat's law for the growth of Slovenian farms between 2007 and 2015 using Farm Accountancy Data Network datasets. Cross-sectional dependence test and four different groups of panel unit root tests are applied to study the relationship between farm size and the farm size growth. It revealed evidence of cross-sectional dependence in farm sizes. Both input (land and labour) and output (economic) sizes of variables as proxy for the measures of farm size are applied. The results suggest that Gibrat's law is valid for Slovenian farms independently from the measures of farm size and types of panel unit root tests. Slovenian smaller farms are not growing faster than larger ones and thus all farm sizes tend to contribute to an increase in average farm size in generally relatively small-to medium-size farm structures.

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“…CSR is more than a strategy, but at the same time outlines a firm assignment, which SMEs supposes to comply with the moral, social, ecological, and economic requirements from the local business partners in all markets where they are present. This positive image and broad stakeholder support can be a valuable extension of SMEs' resource bases that can be used to compete against larger firms that are less resource-constraint and ultimately influence SMEs performance (Fiala & Hedija, 2019).…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility and Internationalization of Czech Transport Enterprises

Велинов¹,

Činčalová²

2021

Hradec Economic Days

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The paper aims at investigating the conditions for development and application of Corporate Social Responsibility best practices in selected Czech transport small and mediumsized enterprises. Furthermore, the study sheds a light on the internationalization process, which is taking place in seventy Czech transport companies by exploring the importance of corporate social responsibility pillars in three regions in Bohemia. Furthermore, the paper is focusing on the applicability and transferability of such of corporate social responsibility and internationalization measures, which will support the Czech transport companies to become more competitive entities by adopting or improving such practices. Paper's results show that the firms, which tend to internationalize more than their counterparts, tend to implement more corporate social responsibility activities. The study suggests that the selected firms from the transport sector are acting proactively by adopting best practices on corporate social responsibility in order to attract more investor and to foster their process of internationalization.

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Testing the validity of Gibrat’s law in the context of profitability performance

Cited by 5 publications

References 45 publications

Impact of Volatility on Firm Sales Growth Some Insights from Pakistan

Impact of Volatility on Firm Sales Growth Some Insights from Pakistan

Testing the validity of Gibrat’s law for Slovenian farms: cross-sectional dependence and unit root tests

Corporate Social Responsibility and Internationalization of Czech Transport Enterprises

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