Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174553
Authors: 
Moschella, Daniele
Tamagni, Federico
Yu, Xiaodan
Year of Publication: 
2017
Series/Report no.: 
LEM Working Paper Series 2017/03
Abstract: 
This article investigates the characteristics of high-growth (HG) firms in Chinese manufacturing, and further explores the effects of firm characteristics on persistence of high-growth. We employ a multidimensional definition of HG firms that simultaneously accounts for growth of sales and employment. Exploiting a representative panel covering the period of the China's miracle, we find that HG firms outperform other firms, showing higher productivity, higher profitability, larger investment intensity, higher sales from product innovation, lower interest expenses and lower leverage. HG firms are also relatively young, larger in size, more often exporters and more concentrated in non-State-controlled companies. However, regression analysis suggests that none of the indicators of structural characteristics and performance considered above displays any statistical association with the ability to persistently replicate high-growth over time. The results speak against the long-run effectiveness of policies supporting the creation and backing of high-growth firms.
Subjects: 
Entrepreneurship
Firm growth
High-growth firms
Persistent high-growth firms
JEL: 
D22
D24
L26
Document Type: 
Working Paper

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