IDEAS home Printed from https://ideas.repec.org/a/ids/wremsd/v9y2013i3p340-351.html
   My bibliography  Save this article

Life cycle of profitability among Swedish micro firms

Author

Listed:
  • Darush Yazdanfar
  • Khalik Salman
  • Leif Arnesson

Abstract

The purpose of this paper is to examine the profitability life cycle among Swedish micro firms. The study sample contains 22,710 micro firms across six industries for which complete financial information is available, giving a total of 68,130 observations. The results of the empirical study indicate that the firm profitability changes systematically over its life cycle stages. The profitability is high in the first life cycle stage, and as firms age and develop, it decreases. The change of firm profitability in different industries over their life cycles follows the general pattern of the total sample. Empirical tests provide support for two additional predictions of the life cycle model: specifically, that firm size influences profitability, and that the industry affiliation has a more pronounced effect on firms' profitability than the variables size and life cycle stage. The results from the statistical tests support the applicability of the life cycle model to explain the profitability development pattern.

Suggested Citation

  • Darush Yazdanfar & Khalik Salman & Leif Arnesson, 2013. "Life cycle of profitability among Swedish micro firms," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 9(3), pages 340-351.
    • Handle: RePEc:ids:wremsd:v:9:y:2013:i:3:p:340-351
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=54738
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando Zambrano Farias & María del Carmen Valls Martínez & Pedro Antonio Martín-Cervantes, 2021. "Explanatory Factors of Business Failure: Literature Review and Global Trends," Sustainability, MDPI, vol. 13(18), pages 1-26, September.
    2. Sharif N. Ahkam & Khairul Alom, 2019. "Liquidity, Level of Working Capital Investment, and Performance in an Emerging Economy," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 18(3), pages 307-328, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:wremsd:v:9:y:2013:i:3:p:340-351. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=173 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.