The heterogeneous dynamics between growth and profits: the case of young firms

@article{Federico2015TheHD,
  title={The heterogeneous dynamics between growth and profits: the case of young firms},
  author={Juan Salvador Federico and Joan-Llu{\'i}s Capelleras},
  journal={Small Business Economics},
  year={2015},
  volume={44},
  pages={231-253}
}
While there is an increasing interest in the literature about the relationship between profits and business growth, the empirical evidence is mixed and inconclusive. This can be explained by the difficulty of fully addressing the complex nature of this relationship. Building on resource-based and evolutionary considerations, the present study investigates the dynamics between growth and profits of young firms by explicitly considering the endogeneity and heterogeneity aspects of the… CONTINUE READING
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