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on Business Economics |
| By: | Dieter Van Esbroeck |
| Abstract: | This paper assesses whether the persistence of firm dominance reflects Schumpeterian dynamism or socialization. A cross-country comparison encompassing Europe, North America and Asia using the Forbes Global 2000 reveals comparable levels of dynamism. The evolution over time is examined for the United States based on Compustat and the Fortune 500, finding an increase in dynamism since 1950. An analysis of the Brussels Stock Exchange shows that the survival probability at the top has remained fairly stable in Belgium for almost two centuries. Generally, firms have a similar chance of survival at the top irrespective of their ranking and firms that have been present longer at the top have a slight advantage for persistence. Multiple mechanisms are identified as potential drivers. The empirical results suggest a Poisson process to model large firm dynamics which, combined with geometric Brownian motion, leads to power-law behavior in the tail of firm size. |
| Keywords: | Firm dynamics; superstar firms; business dynamism; creative destruction. |
| Date: | 2025–02–26 |
| URL: | https://d.repec.org/n?u=RePEc:ete:vivwps:760653 |
| By: | World Bank |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40678 |
| By: | Behringer, Jan; van Treeck, Till; Victor, Vincent |
| Abstract: | This paper investigates the role of family firms in the fall of the labor share and rise in corporate saving in Germany from 1993 to 2019. Combining a new Family Ownership and Governance (FOG) database with financial data, we analyze 929 publicly listed firms. Our findings show that firm-level labor share declines are widespread in Germany, contrasting with findings from the U.S. that link this trend to a few fast-growing superstar firms. Family firms, particularly in manufacturing, experienced sharper decreases in the labor share and stronger increases in corporate saving compared to non-family firms. The level of family involvement in Germany's two-tier board system (management and supervisory board) further affects these outcomes. Despite paying lower wages, we find no evidence that family firms provide greater employment stability. Our results challenge global generalizations about the drivers of the labor share and corporate saving, while emphasizing the macroeconomic relevance of family firms, especially in Germany's corporate sector. |
| Keywords: | Labor share, corporate saving, family firms |
| JEL: | D22 D33 G32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:313637 |
| By: | Seda Koymen Ozer (Baskent University, Ankara, Turkey); Alessia Lo Turco (Department of Economics and Social Sciences, Universita' Politecnica delle Marche (UNIVPM)); Daniela Maggioni (Department of Economics, Catholic University of the Sacred) |
| Abstract: | We investigate how the import of automation impacts upgrading within firm production networks. We use comprehensive data on product mix, foreign trade, balance sheets, employment, and firm-to-firm transactions for Turkish manufacturing firms from 2009 to 2020. By employing Propensity Score Matching (PSM) alongside event study analyses and an instrumental variable (IV) approach, our research provides robust evidence that firms importing automation enhance the quality and lower quality-adjusted prices of their products. Importantly, the benefits of automation extend downstream throughout the supply chain to firms sourcing inputs from suppliers that have adopted automation. No significant effects propagate, instead, to upstream firms supplying automation adopters. |
| Keywords: | buyer-supplier links, product upgrading, manufacturing, Turkiye |
| JEL: | O14 F61 F63 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:anc:wpaper:495 |