Statistical Properties of Business Firms Structure and Growth

Abstract

We analyze a database comprising quarterly sales of 55624 pharmaceutical products commercialized by 3939 pharmaceutical firms in the period 1992--2001. We study the probability density function (PDF) of growth in firms and product sales and find that the width of the PDF of growth decays with the sales as a power law with exponent $\beta =0.20\pm 0.01$. We also find that the average sales of products scales with the firm sales as a power law with exponent $\alpha =0.57\pm 0.02$. And that the average number products of a firm scales with the firm sales as a power law with exponent $\gamma =0.42\pm 0.02$. We compare these findings with the predictions of models proposed till date on growth of business firms.

References in corpus (1)

• On size and growth of business firms

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