dorsal/arxiv
View SchemaRe-examination of the size distribution of firms
| Authors | Taisei Kaizoji, Hiroshi Iyetomi, Yuichi Ikeda |
|---|---|
| Categories | |
| ArXiv ID | physics/0512124 |
| URL | https://arxiv.org/abs/physics/0512124 |
| Journal | Evolutionary and Institutional Economics Review 2-2 (2006) |
Abstract
In this paper we address the question of the size distribution of firms. To this aim, we use the Bloomberg database comprising multinational firms within the years 1995-2003, and analyze the data of the sales and the total assets of the separate financial statement of the Japanese and the US companies, and make a comparison of the size distributions between the Japanese companies and the US companies. We find that (i) the size distribution of the US firms is approximately log-normal, in agreement with Gibrat's observation (Gibrat 1931), and in contrast (ii) the size distribution of the Japanese firms is clearly not log-normal, and the upper tail of the size distribution follows the Pareto law. It agree with the predictions of the Simon model (Simon 1955). Key words: the size distribution of firms, the Gibrat's law, and the Pareto law
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"abstract": "In this paper we address the question of the size distribution of firms. To\nthis aim, we use the Bloomberg database comprising multinational firms within\nthe years 1995-2003, and analyze the data of the sales and the total assets of\nthe separate financial statement of the Japanese and the US companies, and make\na comparison of the size distributions between the Japanese companies and the\nUS companies. We find that (i) the size distribution of the US firms is\napproximately log-normal, in agreement with Gibrat\u0027s observation (Gibrat 1931),\nand in contrast (ii) the size distribution of the Japanese firms is clearly not\nlog-normal, and the upper tail of the size distribution follows the Pareto law.\nIt agree with the predictions of the Simon model (Simon 1955). Key words: the\nsize distribution of firms, the Gibrat\u0027s law, and the Pareto law",
"arxiv_id": "physics/0512124",
"authors": [
"Taisei Kaizoji",
"Hiroshi Iyetomi",
"Yuichi Ikeda"
],
"categories": [
"physics.soc-ph",
"q-fin.GN"
],
"journal_ref": "Evolutionary and Institutional Economics Review 2-2 (2006)",
"title": "Re-examination of the size distribution of firms",
"url": "https://arxiv.org/abs/physics/0512124"
},
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