How Firms Respond to Business Cycles: The Role of Firm Age and Firm Size

AbstractIn the last 20 years there is a sharp decline in collective bargaining coverage in Germany. Research on the determinants of collective bargaining shows: subscribing to a sectoral bargaining system depends on several structural factors, like firm size, branch affiliation, owner-ship, firm age and work force composition. Parameter that – at least partly - were subject to considerable changes in the last two decades. With data of the IAB establishment panel we want to determine which part of the decline in collective bargaining coverage is due to structural change. We use a decomposition technique (Fairlie 2005) to break down the differences in coverage between 1998 and 2016. Further-more we take a look at distinct subgroups of establishments (along firm size). Our findings show that there is some influence of structural factors on the decline of collective bargaining coverage in the long run. And there are considerable differences between small and large firms with the decisions of the latter being more dependent on structural change.

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The Role of Size and Age on Firm Growth: Evidence from Manufacturing SMMEs in KwaZulu-Natal Province, South Africa

African Journal of Inter/Multidisciplinary Studies ◽

10.51415/ajims.v3i1.903 ◽

2021 ◽

Vol 3 (1) ◽

pp. 144-160

Author(s):

Helper Zhou ◽

Victor Gumbo

Keyword(s):

South Africa ◽

Firm Size ◽

Firm Growth ◽

Developing Economies ◽

Negative Relationship ◽

Age And Growth ◽

Firm Age ◽

Kwazulu Natal ◽

The Government

Previous studies in both developed and developing economies have reported that firm growth declines with firm age and size. However, review of literature showed that there are limited studies to empirically assess the validity of this fact on firm growth in developing countries. As such, this paper assesses the role of firm size and age on firm growth in KwaZulu Natal, South Africa. The study employed a unique balanced three-year panel dataset of 191 manufacturing Small Medium and Micro Enterprises (SMMEs) in the province. As expected, the results showed a negative relationship between firm growth and size especially in the short term. However, contrary to the wider body of literature, the study established a positive relationship between firm age and growth. The study also established that older firms grow faster than their younger counterparts despite their size. On the other hand, small sized firms despite their age grow faster than large firms when employment and total assets were used as measures of firm size. It was recommended that the government should be cognisant of the complexity of SMMEs when crafting various sector policies.

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The Role of Internal Control and Firm-Specific Characteristics on Firm Value: Evidence from Indian Financial Services Sector

Indian Journal of Finance and Banking ◽

10.46281/ijfb.v4i1.612 ◽

2020 ◽

Vol 4 (1) ◽

pp. 117-133

Author(s):

Anju Kalluvelil Janardhanan ◽

Uma V R

Keyword(s):

Stock Returns ◽

Firm Size ◽

Internal Control ◽

Financial Services ◽

Firm Value ◽

Firm Age ◽

Services Sector ◽

Financial Services Sector ◽

Size Firm

This research determines the role of firm-specific characteristics such as firm size, firm age, liquidity, firm complexity, board independence, institutional ownership, non-performing assets, annual volatility of stock returns, leverage and internal control represented by Enterprise Risk Management (ERM) and Big4 auditor on the firm value measured using Tobin’s Q, Return On Equity (ROE) and Return On Assets (ROA). This proposition is addressed with the sound statistical investigation of 67 companies listed in the NSE financial services sector by utilizing annual panel data for 11 years from 2007-17. The important findings of the study are that the purchasers consider firm size, firm age, liquidity, the volatility of stock returns, and non-performing assets. ROA shows that the management has to focus on firm size, firm age, and volatility of stock returns. ROE informs that the investors will look into firm size, firm age, institutional ownership, non-performing assets, leverage, firm complexity, and volatility of stock returns.

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Firm size and cost system sophistication: The role of firm age

The British Accounting Review ◽

10.1016/j.bar.2021.101037 ◽

2021 ◽

pp. 101037

Author(s):

Wael Hadid ◽

Mohammed Hamdan

Keyword(s):

Firm Size ◽

Firm Age ◽

Cost System

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Pengaruh Profitabilitas, Umur Perusahaan, Ukuran Perusahaan, Kualitas Audit, Dan Struktur Modal Terhadap Kualitas Laba

Jurnal ULTIMA Accounting ◽

10.31937/akuntansi.v6i1.145 ◽

2014 ◽

Vol 6 (1) ◽

pp. 27-42

Author(s):

Keshia Anjelica ◽

Albertus Fani Prasetyawan

Keyword(s):

Firm Size ◽

Stock Prices ◽

Audit Quality ◽

Earnings Quality ◽

Secondary Data ◽

Financial Statements ◽

Firm Age ◽

Construction Companies ◽

Auditor Switching ◽

Testing Method

The objective of this research is to examine the effect of profitability, firm age, firm size, audit quality, and leverage both partially and simultaneously towards earnings quality. The testing method used in this research is multiple regressions. The objects of this study are property, real estate and construction companies which were listed at Kompas 100 for the period 2010-2012. The samples are 15 companies determined based on purposive sampling. The data used in this study are secondary data such as financial statements and historical stock prices. The results of this study are (1) firm age has a negative significant effect on earnings quality, meanwhile firm size has a positive significant effect on earnings quality (2) profitability, audit quality, and leverage partially have an insignificant effect towards earnings quality (3) profitability, firm age, firm size, audit quality, and leverage simultaneously have a significant effect towards voluntary auditor switching. Keywords: ERC, earnings quality, profitability, firm age, firm size, audit quality, leverage.

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