(urs.waelchli@ifm.unibe.ch). We have benefited from Nancy Macmillan’s great editorial help. We wish to thank
| Title: | (urs.waelchli@ifm.unibe.ch). We have benefited from Nancy Macmillan’s great editorial help. We wish to thank |
|---|---|
| Authors: | Claudio Loderer; Urs Waelchli; Jel Codes G; Carsten Bienz; Øyvind Bohren; Michael Brennan; Francois Degeorge; Bernd Frick; Michael Gerfin; Michael Lemmon; Diego Liechti; Stewart Myers; Klaus Neusser; Erik Nowak; Adriano Rampini; Ahron Rosenfeld; Lukas Roth; Markus Senn; Bogdan Stacescu; Heather Tookes; John Zhou |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://www.fma.org/Hamburg/Papers/age_performance.pdf. |
| Publication Year: | 2010 |
| Collection: | CiteSeerX |
| Subject Terms: | firm age; organizational rigidities; rent-seeking; firm life cycle; corporate governance; firm performance |
| Description: | As firms grow older, their profitability seems to decline. We first document this phenomenon and show that it is very robust. Then we offer two non-exclusive explanations of why firms may age. First, corporate aging could reflect a cementation of organizational rigidities over time. Consistent with that, costs rise, growth slows, assets become obsolete, and investment and R&D activities decline. Second, older age could advance the diffusion of rent-seeking behavior inside the firm. This hypothesis is supported by the poorer governance, larger boards, and higher CEO pay we observe in older firms. Overall, firms seem to face a real senescence problem. |
| Document Type: | text |
| File Description: | application/pdf |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.184.105; http://www.fma.org/Hamburg/Papers/age_performance.pdf |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.184.105; http://www.fma.org/Hamburg/Papers/age_performance.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.8F956B1E |
| Database: | BASE |