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Standing the test of time. Does firm performance improve with age? An analysis of the wine industry

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  • Arturo Capasso
  • Carmen Gallucci
  • Matteo Rossi

Abstract

Currently, few studies have investigated how longevity affects economic and financial performance. These studies have generally approached the issue according to theoretical perspectives; thus, even fewer empirical studies exist. The present work aims to fill this gap by empirically verifying whether longevity is a variable that can determine firm performance. Our main hypotheses are tested on a large sample of Italian wineries by applying a panel model with time fixed effects on firm performance measured from 2008 to 2011. Our main findings highlight that the oldest wineries outperform the youngest wineries and that the longevity factor can significantly explain the difference in performance. We also discuss some practical implications of our study and intriguing directions for future research.

Suggested Citation

  • Arturo Capasso & Carmen Gallucci & Matteo Rossi, 2015. "Standing the test of time. Does firm performance improve with age? An analysis of the wine industry," Business History, Taylor & Francis Journals, vol. 57(7), pages 1037-1053, October.
    • Handle: RePEc:taf:bushst:v:57:y:2015:i:7:p:1037-1053
    DOI: 10.1080/00076791.2014.993614
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    References listed on IDEAS

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    1. M. E. Bontempi & R. Golinelli, 2001. "Is financial leverage mean-reverting? Unit root tests and corporate financing models," Working Papers 422, Dipartimento Scienze Economiche, Universita' di Bologna.
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    Cited by:

    1. Le, Quyen & Vafaei, Alireza & Ahmed, Kamran & Kutubi, Shawgat, 2022. "Independent directors' reputation incentives and firm performance – an Australian perspective," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    2. Elisa Giacosa & Alberto Mazzoleni, 2016. "A decision model for the suitable financing for small and medium enterprises," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 8(1), pages 39-74.
    3. Lawrence, Akvile & Karlsson, Magnus & Thollander, Patrik, 2018. "Effects of firm characteristics and energy management for improving energy efficiency in the pulp and paper industry," Energy, Elsevier, vol. 153(C), pages 825-835.
    4. Edmund Mallinguh & Christopher Wasike & Zeman Zoltan, 2020. "The Business Sector, Firm Age, and Performance: The Mediating Role of Foreign Ownership and Financial Leverage," IJFS, MDPI, vol. 8(4), pages 1-16, December.
    5. Olubanjo Michael Adetunji & Akintola Amos Owolabi, 2016. "Firm Performance and Its Drivers: How Important Are the Industry and Firm-Level Factors?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 60-77, November.
    6. Felix Kwabena Danso & Michael Adusei & Beatrice Sarpong-Danquah & Kwadwo Boateng Prempeh, 2024. "Board expertise diversity and firm performance in sub-Saharan Africa: do firm age and size matter?," Future Business Journal, Springer, vol. 10(1), pages 1-20, December.
    7. Simona Alfiero & Laura Broccardo & Massimo Cane, 2023. "Sustainable Business Model and the Firm Age Variable Impact: Evidence from wine industry," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(3), pages 165-191.
    8. Olubanjo Adetunji & Akintola Owolabi, 2016. "Firm Performance and Its Drivers: How Important Are the Industry and Firm-Level Factors?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 1-60, November.
    9. LIU Yang, 2018. "Firm Age, Size, and Employment Dynamics: Evidence from Japanese firms," Discussion papers 18006, Research Institute of Economy, Trade and Industry (RIETI).
    10. Silvia Andr?s Gonz?lez-Moralejo & Mildrey Garc?a Cort?s & Juan Francisco L?pez Miquel, 2021. "Are small and medium-size food industry firms profitable? Explaining differences in their performance: The case of the Valencia Region," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(1), pages 1-24.
    11. Andrés González-Moralejo, Silvia & García Cortés, Mildrey & López Miquel, Juan Francisco, 2021. "Are small and medium-size food industry firms profitable? Explaining differences in their performance: The case of the Valencia Region," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 23(1), May.
    12. Tripti Nashier & Amitabh Gupta, 2023. "Ownership Concentration and Firm Performance in India," Global Business Review, International Management Institute, vol. 24(2), pages 353-370, April.

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