VALIDITY OF GIBRAT´S LAW: FOCUS ON GENDER COMPOSITION OF TOP MANAGEMENT

• Authors: Hedija Veronika
• Languages of publication: EN

Abstracts

EN

The study is focused on relationship between firm size and firm growth in the context of gender composition of top management of the firms. In accordance with Gibrat´s law, firm growth is the stochastic process that does not depend on firm size. The aim of this study is to find out if the confirmation or rejection of Gibrat´s law validity might be related to the gender composition of management. The data for 20,073 Czech firms in the period 2008 – 2013 is used. To examine the relationship between firm size and firm growth, the linear auto-regression model is applied. The study concludes that the gender composition of top management is not the key factor affecting the validity of Gibrat´s law. The validity of Gibrat´s law is rejected at the aggregate level and also for both men-led and women-led firms. Smaller firms tend to growth faster than their bigger counterparts.

Keywords

EN

GIBRAT´S LAW; FIRM SIZE; FIRM GROWTH; GENDER; MANAGEMENT

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2017
• Volume: 65
• Issue: 1
• Pages: 46 – 65

Contributors

author

Hedija Veronika

• College of Polytechnics Jihlava, Department of Economic Studies, Tolstého 16, 586 01 Jihlava, Czech Republic