Alex Coad
University of Sussex, SPRU - Science and Technology Policy Research, Department Member
DOCUMENT DE TREBALL XREAP2010-10 Like milk or wine: Does firm performance improve with age? Alex Coad (Max Planck Institute of Economics) Agustí Segarra (GRIT) Mercedes Teruel (GRIT) Like milk or wine: Does firm performance improve with... more
DOCUMENT DE TREBALL XREAP2010-10 Like milk or wine: Does firm performance improve with age? Alex Coad (Max Planck Institute of Economics) Agustí Segarra (GRIT) Mercedes Teruel (GRIT) Like milk or wine: Does firm performance improve with age?
Zusammenfassung: We focus on the relationship of age and diversification patterns of German machine tool manufacturers in the post war era. Based on trade journals we track the entire firm populations' product portfolio development... more
Zusammenfassung: We focus on the relationship of age and diversification patterns of German machine tool manufacturers in the post war era. Based on trade journals we track the entire firm populations' product portfolio development throughout each firm's lifetime. We distinguish between minor diversification and major diversification, where these two concepts refer to adding a new product variation within a familiar submarket, or expanding the product portfolio into new submarkets. Our analysis reveals four main insights.
Abstract We study the effects of diversity on the survival and growth of new ventures using the Danish Linked Employer-Employee database. To get cleaner measures of diversity, we focus on entrepreneurial dyads, and also investigate the... more
Abstract We study the effects of diversity on the survival and growth of new ventures using the Danish Linked Employer-Employee database. To get cleaner measures of diversity, we focus on entrepreneurial dyads, and also investigate the asymmetric effects of 'directed'diversity by distinguishing between the 'primary'and the 'secondary'founder.
We apply a panel vector autoregression model to a firm-level longitudinal database to observe the co-evolution of sales growth, employment growth, profits growth and the growth of research and development (R&D) expenditure. Contrary to... more
We apply a panel vector autoregression model to a firm-level longitudinal database to observe the co-evolution of sales growth, employment growth, profits growth and the growth of research and development (R&D) expenditure. Contrary to expectations, profit growth seems to have little detectable association with subsequent R&D investment. Instead, firms appear to increase their total R&D expenditure following growth in sales and employment.
The emerging problems of climate change are largely due to the exploitation of new processes made available through technological innovation. However, it is widely believed that technological innovation can also help to meet the challenge... more
The emerging problems of climate change are largely due to the exploitation of new processes made available through technological innovation. However, it is widely believed that technological innovation can also help to meet the challenge of environmental protection. In this paper, we consider the processes of adoption of pro-environmental innovations by individual consumers.
Abstract We seek to complement existing research on High-Growth Firms (HGFs) by applying relatively advanced econometric techniques to the analysis of HGF growth processes. Structural Vector Autoregressions (SVARs) show that the growth... more
Abstract We seek to complement existing research on High-Growth Firms (HGFs) by applying relatively advanced econometric techniques to the analysis of HGF growth processes. Structural Vector Autoregressions (SVARs) show that the growth processes of firms start with employment growth, then sales growth, then assets growth, then profits growth, while the growth processes of HGFs put more emphasis on sales growth driving the other dimensions.
Abstract: This paper examines the theory and evidence in support of entrepreneurial leaning (EL). Under this theory entrepreneurial performance is argued to be enhanced by EL which itself is enhanced by business experience. However, if... more
Abstract: This paper examines the theory and evidence in support of entrepreneurial leaning (EL). Under this theory entrepreneurial performance is argued to be enhanced by EL which itself is enhanced by business experience. However, if business performance is strongly influenced by chance then evidence of EL will be difficult to identify. We test for EL using a large scale data set comprising 6671 new firms. We choose business survival over three years as our performance measure and then formulate three tests for EL.
Abstract: We focus on the relationship of age, growth and diversification patterns of German machine tool manufacturers in the post war era. Based on trade journal data our analysis reveals four main insights. Firstly, we observe that... more
Abstract: We focus on the relationship of age, growth and diversification patterns of German machine tool manufacturers in the post war era. Based on trade journal data our analysis reveals four main insights. Firstly, we observe that firms have lower diversification rates as they grow older, and that eventually diversification rates even turn negative for old firms on average.
Abstract: We study the effects of diverse team composition on the survival and growth of new ventures using the Danish Linked Employer-Employee database. To get cleaner measures of diverse team composition, we focus on entrepreneurial... more
Abstract: We study the effects of diverse team composition on the survival and growth of new ventures using the Danish Linked Employer-Employee database. To get cleaner measures of diverse team composition, we focus on entrepreneurial dyads, and also investigate the asymmetric e ects of team composition by distinguishing between the'primary'and the'secondary'founder.
Keywords: Institutions, institutional asymmetries, technological development, entrepreneurship, technological frontier “a period of rapid growth does not materialize overnight simply because an institutional barrier to industrialization... more
Keywords: Institutions, institutional asymmetries, technological development, entrepreneurship, technological frontier “a period of rapid growth does not materialize overnight simply because an institutional barrier to industrialization has disappeared. Such a period requires a simultaneous development of complementary efforts in many directions. The component elements of growth in the individual industrial branches must be adjusted to each other.” Gerschenkron (1962, p. 125)
The primary focus of this thesis is to advance our understanding of the phenomenon of firm growth. In our modern economy, industries are becoming more and more turbulent and the struggle between firms for market share is becoming... more
The primary focus of this thesis is to advance our understanding of the phenomenon of firm growth. In our modern economy, industries are becoming more and more turbulent and the struggle between firms for market share is becoming increasingly fierce. The growing importance of innovation, in particular, has been responsible for this. In addition, the development of financial institutions has enabled firms to accelerate their expansion projects with the support of external finance.
Zusammenfassung: We attempt to describe the coevolution of employment growth, sales growth and growth of profits in a panel of French manufacturing firms 1996-2004. Our analysis entails recursive panel vector autoregressions, whereby we... more
Zusammenfassung: We attempt to describe the coevolution of employment growth, sales growth and growth of profits in a panel of French manufacturing firms 1996-2004. Our analysis entails recursive panel vector autoregressions, whereby we impose the structure of employment growth leading to contemporaneous sales growth, which in turn is associated with contemporaneous growth of profits.
Abstract We investigate the growth and survival of nascent businesses by analyzing their bank records. We do not find strong evidence in favour of a taxonomy of growth paths, because we observe that every possible growth path seems to... more
Abstract We investigate the growth and survival of nascent businesses by analyzing their bank records. We do not find strong evidence in favour of a taxonomy of growth paths, because we observe that every possible growth path seems to occur with roughly equal probability. However, we observe that survival depends on the business' growth path. Controlling for lagged size, we observe that longer lags of growth, and even start-up size, have significant effects on survival.
Abstract In this paper, we present a recently developed method for exploiting non-Gaussianity in the data for estimating structural vector autoregressive models, with the aim of capturing the causal structure of the data, and further we... more
Abstract In this paper, we present a recently developed method for exploiting non-Gaussianity in the data for estimating structural vector autoregressive models, with the aim of capturing the causal structure of the data, and further we show how the method can be applied to microeconomic data to investigate the determinants of firm dynamics. We find that employment growth and sales growth contribute to growth of R&D, while growth of profits has a negligible effect.
The purpose of this paper is to study who high-growth firms (HGFs) hire using a matched employer-employee dataset for all knowledge intensive industries in Sweden, where high growth is measured over the period 1999-2002. The results... more
The purpose of this paper is to study who high-growth firms (HGFs) hire using a matched employer-employee dataset for all knowledge intensive industries in Sweden, where high growth is measured over the period 1999-2002. The results indicate that HGFs to a larger extent employ young people, immigrants, and individuals with longer unemployment periods. However, these patterns seem contingent on the stage of firm evolution.
Abstract Little is known about how firm performance changes with age, presumably because of the paucity of data on firm age. We analyse the performance of a panel of Spanish manufacturing firms between 1998 and 2006, relating it to firm... more
Abstract Little is known about how firm performance changes with age, presumably because of the paucity of data on firm age. We analyse the performance of a panel of Spanish manufacturing firms between 1998 and 2006, relating it to firm age. We find evidence that firms improve with age, because ageing firms are observed to have steadily increasing levels of productivity, higher profits, larger size, lower debt ratios, and higher equity ratios.
Abstract We outline a simulation model framework for modelling firms as configurations of lumpy, discrete resources. We begin by listing a number of research questions that can be addressed within this framework. We then present the... more
Abstract We outline a simulation model framework for modelling firms as configurations of lumpy, discrete resources. We begin by listing a number of research questions that can be addressed within this framework. We then present the structure of the model, as well as some preliminary results. We hope to get more results in time for the conference.
Abstract Structural vector-autoregressive models are potentially very useful tools for guiding both macro-and microeconomic policy. In this study, we present a recently developed method for estimating such models, which uses non-normality... more
Abstract Structural vector-autoregressive models are potentially very useful tools for guiding both macro-and microeconomic policy. In this study, we present a recently developed method for estimating such models, which uses non-normality to recover the causal structure underlying the observations. We show how the method can be applied to both microeconomic data (to study the processes of firm growth and firm performance) and macroeconomic data (to analyse the effects of monetary policy).
Zusammenfassung: Bad health can severely disrupt a person's life. We apply matching estimators to examine how changes in subjective health status as well as different (objective) conditions of bad health affect subjective well-being. The... more
Zusammenfassung: Bad health can severely disrupt a person's life. We apply matching estimators to examine how changes in subjective health status as well as different (objective) conditions of bad health affect subjective well-being. The strongest effect is in the category alcohol and drug abuse, followed by anxiety, depression and other mental illnesses, stroke, diabetes and cancer. We also take into account differences in Big Five personality traits.
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Abstract This article offers many new insights into the processes of firm growth by applying a vector autoregression model to longitudinal panel data on French manufacturing firms. We observe the coevolution of key variables such as... more
Abstract This article offers many new insights into the processes of firm growth by applying a vector autoregression model to longitudinal panel data on French manufacturing firms. We observe the coevolution of key variables such as growth of employment, sales, gross operating surplus, and labor productivity growth. Preliminary results suggest that employment growth is succeeded by the growth of sales, which in turn is followed by growth of profits. Generally speaking, however, growth of profits is not followed by much ...
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Research Interests: Coevolution, Applied Economics, Structural change and economic dynamics, Quantile Regression, Vector Autoregression, and 13 moreFirm Growth, Profitability, Household Consumption, Labour Productivity, VAR, panel VAR, Industry Dynamics, Industry Evolution, Productivity Growth, Market Selection, Employment Growth, Empirical Analysis, and Vector Autoregressive (VAR) Model
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We use a panel vector autoregressions model to examine the coevolution of changes in mental well-being and changes in income, health, marital status and employment status for the British Household Panel Survey (BHPS) data set. This... more
We use a panel vector autoregressions model to examine the coevolution of changes in mental well-being and changes in income, health, marital status and employment status for the British Household Panel Survey (BHPS) data set. This technique allows us to simultaneously analyze the impact of the aforementioned factors on each other. We find that increases in well-being are associated with subsequent increases in income, marriage, employment, and health variables, while increases in the these life-domain variables ( ...