The Drivers of Firm Growth Firm Size Effect

摘要

This paper discusses an important economic problem which is why and how firmsgrow and argues that firm size is one of the leading contributors to firm growthdiscrepancy. We demonstrate the importance of firm size through the analysis of 40years of Compustat individual firm level data. Our results indicate that despite manybusiness advantages large firms have, smaller firms in the same industry still findtheir edges in growing their business.