HUI Working Papers, HUI Research
High-growth firms: Not so vital after all?
(), Daniel Halvarsson and Oana Mihaescu
Abstract: High-growth firms have received considerable interest
recently since they create most of the new jobs in the economy. The purpose
of our paper is to investigate the characteristics of high-growth firms
prior to their growth period, and whether these characteristics differ
across industries. Using data on a large sample of limited liability firms
in Sweden for the period 2007-2010, we find that high-growth firms do not
have the characteristics that we typically associate with successful firms.
On the contrary, our results indicate that high-growth firms have low
profits and a weak financial position. This might explain why studies have
found that high-growth firms are seldom capable of sustaining their high
growth rates in subsequent periods, and thus question policies that are
targeted towards these companies.
Keywords: entrepreneurship; firm growth; gazelles; high-growth firms; high-impact firms; innovation; (follow links to similar papers)
JEL-Codes: L11; L25; (follow links to similar papers)
30 pages, September 21, 2015
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