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  1. 1 Ekonomický časopis (Journal of Economics)

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  1. 1 2017

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  1. 1 Hedija V.

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

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Hedija V.
Ekonomický časopis (Journal of Economics)
|
2017
|
vol. 65
|
issue 1
46 – 65
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.
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