Study of firm size variables which determine growth of firms and the application to growth strategy of firms

2016 Fiscal Year Final Research Report

• Project/Area Number: 24510212
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Social systems engineering/Safety system
• Research Institution: Kanazawa Gakuin University
• Principal Investigator: Ishikawa Atushi 金沢学院大学, 経営情報学部, 教授 (90308627)
• Project Period (FY): 2012-04-01 – 2017-03-31
• Keywords: 企業 / 成長 / ジブラ則 / 反転対称性 / 非ジブラ則 / 企業規模量

Outline of Final Research Achievements

Employing financial database of Japanese firms, we clarified that total factor productivity in firms follows power law observed in sales (Y) and number of employees (L) and that sales of firms are significantly influenced by number of employees. We also proved the equivalence of the Cobb-Douglas production function and the inverse symmetry observed in sales, assets (K), and number of employees. Furthermore, we confirmed that Gibrat's law and inverse symmetry among sales, assets, and number of employees of firms, and using them we identified the exact functional form of the probability density function (K;L). We found that the average firm growth follows power law first ten years from their birth, however, the growth follows gentle exponential function, and showed that Non-Gibrat's law and Gibrat's law lead to this phenomena.

Free Research Field

経済物理学