On the existence of persistently outperforming firms

M. Capasso, E. Cefis*, K. Frenken

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

33 Citations (Web of Science)


This study analyses persistence in growth rates for a data set of manufacturing firms of all sizes. Previous quantile autoregressions of firm growth rates show that extreme growth events are likely to be negatively correlated over time, thus questioning the existence of persistent outperformers. By supplementing the quantile regression analyses with transition probability matrices, our study shows that "bouncing" firms coexist with persistent outperformers. This result is shown to be robust for all size classes as well as for the exclusion of firms who experienced acquisitions or spin-offs.
Original languageEnglish
Pages (from-to)997-1036
JournalIndustrial and Corporate Change
Issue number4
Publication statusPublished - 1 Jan 2014

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