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Does Gibrat's law hold for retailing?: evidence from Sweden
HUI Research (Handelns utredningsinstitut), Stockholm, Sweden; Department of Economics, School of Technology and Business Studies, Dalarna University, Falun, Sweden.
The Ratio Institute (RATIO), Stockholm, Sweden; Department of Economics, Dalarna University, Falun, Sweden.
Department of Business Administration, School of Technology and Business Studies, Dalarna University, Falun, Sweden; Department of Social Sciences, Mid Sweden University, Östersund, Sweden.
2012 (English)In: Journal of Retailing and Consumer Services, ISSN 0969-6989, E-ISSN 1873-1384, Vol. 19, no 5, p. 464-469Article in journal (Refereed) Published
Abstract [en]

Gibrat's Law predicts that firm growth is a purely random effect and therefore should be independent of firm size. The purpose of this paper is to test Gibrat's law within the retail industry, using a novel data-set comprising all surviving Swedish limited liability companies active at some point between 1998 and 2004. Very few studies have previously investigated whether Gibrat's Law seems to hold for retailing, and they are based on highly aggregated data. Our results indicate that Gibrat's Law can be rejected for a large majority of five-digit retail industries in Sweden, since small retail firms tend to grow faster than large ones.

Place, publisher, year, edition, pages
2012. Vol. 19, no 5, p. 464-469
Keywords [en]
firm dynamics, firm size, firm growth, retail industry
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-36414DOI: 10.1016/j.jretconser.2012.06.001ISI: 000213887600002Scopus ID: 2-s2.0-84864356106OAI: oai:DiVA.org:oru-36414DiVA, id: diva2:743822
Available from: 2014-09-05 Created: 2014-09-05 Last updated: 2025-01-20Bibliographically approved

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