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The Size and Growth of Firms

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  • Ajit Singh
  • Geoffrey Whittington

Abstract

This paper is a sequel to the analysis of the growth process of firms presented in Chapters 4 and 5 of our book Growth, Profitability and Valuation. The relationship between size and growth of firms is explored using a more comprehensive set of data than was used in the book. In particular, the book was based on data relating to individual quoted companies in the UK in only three large industries, whereas, in this paper, we extend the analysis to cover all major industrial groups in manufacturing, construction and distribution. This paper explores the relationship between size and growth of firms, and particularly stochastic models based on the Law of Proportionate Effect or Gibrat's Law.
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Suggested Citation

  • Ajit Singh & Geoffrey Whittington, 1975. "The Size and Growth of Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(1), pages 15-26.
    • Handle: RePEc:oup:restud:v:42:y:1975:i:1:p:15-26.
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    References listed on IDEAS

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    1. Robin Marris & Adrian Wood (ed.), 1971. "The Corporate Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01110-0, October.
    2. anonymous, 1971. "Corporate financing in 1970," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jan, pages 1-8.
    3. Stephen Hymer & Peter Pashigian, 1962. "Firm Size and Rate of Growth," Journal of Political Economy, University of Chicago Press, vol. 70(6), pages 556-556.
    4. J. M. Samuels, 1965. "Size and The Growth of Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(2), pages 105-112.
    5. Jesse W. Markham, 1955. "Survey of the Evidence and Findings on Mergers," NBER Chapters, in: Business Concentration and Price Policy, pages 141-212, National Bureau of Economic Research, Inc.
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    • D0 - Microeconomics - - General

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