Why do firm growth and exit rates decline with size? What determines the size distribution of firms? This paper presents a theory of firm dynamics that simultaneously rationalizes the basic facts on firm growth, exit, and size distributions. The theory emphasizes the accumulation of industry specific factors in response to industry specific productivity shocks. The emphasis on the accumulation ...

It is often difficult to predict how a change in a firm’s corporate governance structure will affect the future value of the firm. We examine what factors are associated with the level of stock market uncertainty surrounding a change in composition of the board of directors by investigating the variations in market reaction to a director resignation announcement. Market uncertainty is measured ...

This paper relates firm size and opportunism by showing that, given certain behavioral dispositions of humans, the size of a profit-maximizing firm can be determined by cognitive aspects underlying firminternal cultural transmission processes. We argue that what firms do better than markets – besides economizing on transaction costs – is to establish a cooperative regime among its employees tha...

We model the firm as a type of artificial neural network that plays a repeated Cournot game. Each period the firm must learn to map environmental signals to both demand parameters and it’s rival’s output choice. In this paper, though, this Cournot game is in the ’background,’ as we focus on the endogenous adjustment of network size. We investigate the long-run behavior of firm/network size as a...

journal of accounting advances (j.a.a) vol. 5, no. 1, 2013, ser. 64/3     extended abstract   monitoring role of auditing and corporate dividend payout policies   dr. v. khodadadi              s. hajizadeh               r. ghorbani shahid chamran university of ahvaz   introduction the aim of this paper is to investigate the relation between monitoring role of independent auditing and corporate ...

Nanoporous silicon powder was produced via efficient magnesiothermic reduction. In this work, the thermal effect and reduction process time were investigated on the porous silicon structure. The nanoporous silicon powders were characterized by  X-ray diffraction analysis and field emission scanning electron microscopy. The results demonstrate that porous structure was changed to homogeneous and...

this paper examines firms' capital structure and their access to financial debt, notably bank loans. We find that the share of financial debt in total liabilities is, on average, smaller for small firms than for large ones. However, this is not because the typical small firm borrows less than a large firm, but because small firms are more likely not to borrow at all. For firms that do borrow, t...

Boards of directors serve several functions, chief among them the monitoring of the firm and management. We model the monitoring activities of directors, who themselves face a moral hazard problem and need incentives to avoid shirking. The firm simultaneously sets wage incentives for all employees (directors and workers), and also chooses the size of the firm. Larger firms are more productive, ...

Gibrat’s law predicts that firm growth is purely random and should be independent of firm size. We use a random effects–random coefficient model to test whether Gibrat’s law holds on average in the studied sample as well as at the individual firm level in the Swedish energymarket. No study has yet investigatedwhetherGibrat’s law holds for individual firms, previous studies having instead estima...

The paper investigates the differences between small, medium-sized and large firms regarding their performance in the introduction of new products and processes. After a review of the relevant literature, two models are proposed and tested in search for different business strategies and innovation inputs connected to product and process innovations. The empirical analysis uses innovation survey...