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The drivers of firm longevity: age, size, profitability and survivorship of Australian corporations, 1901-1930

Journal Article


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Abstract


  • Why do some firms last longer than others? This question has attracted considerable interest among scholars from business history, management and economics. Our article combines the business historian's macro view of the relationship between size, longevity, and economic development with quantitative modelling. We apply survival analysis to data relating to size, age and profitability, three first-order explanations of longevity, for Australian stock exchange (ASX) listed corporations from 1901 to 1930. The novelty of the article is twofold: we find that firm size is a poor predictor of longevity for the full sample but its age and profitability are highly significant; our data covers a longer time frame and relates to a rich mid-sized and non-industrialised country.

UOW Authors


  •   Panza, Laura (external author)
  •   Ville, Simon
  •   Merrett, David (external author)

Publication Date


  • 2017

Citation


  • Panza, L., Ville, S. & Merrett, D. (2017). The drivers of firm longevity: age, size, profitability and survivorship of Australian corporations, 1901-1930. Business History, 60 (2), 157-177.

Scopus Eid


  • 2-s2.0-85015171885

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=3918&context=lhapapers

Ro Metadata Url


  • http://ro.uow.edu.au/lhapapers/2907

Number Of Pages


  • 20

Start Page


  • 157

End Page


  • 177

Volume


  • 60

Issue


  • 2

Place Of Publication


  • United Kingdom

Abstract


  • Why do some firms last longer than others? This question has attracted considerable interest among scholars from business history, management and economics. Our article combines the business historian's macro view of the relationship between size, longevity, and economic development with quantitative modelling. We apply survival analysis to data relating to size, age and profitability, three first-order explanations of longevity, for Australian stock exchange (ASX) listed corporations from 1901 to 1930. The novelty of the article is twofold: we find that firm size is a poor predictor of longevity for the full sample but its age and profitability are highly significant; our data covers a longer time frame and relates to a rich mid-sized and non-industrialised country.

UOW Authors


  •   Panza, Laura (external author)
  •   Ville, Simon
  •   Merrett, David (external author)

Publication Date


  • 2017

Citation


  • Panza, L., Ville, S. & Merrett, D. (2017). The drivers of firm longevity: age, size, profitability and survivorship of Australian corporations, 1901-1930. Business History, 60 (2), 157-177.

Scopus Eid


  • 2-s2.0-85015171885

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=3918&context=lhapapers

Ro Metadata Url


  • http://ro.uow.edu.au/lhapapers/2907

Number Of Pages


  • 20

Start Page


  • 157

End Page


  • 177

Volume


  • 60

Issue


  • 2

Place Of Publication


  • United Kingdom