Geroski, Paul A; Machin, Stephen; Walters, Christopher F - In: Journal of Industrial Economics 45 (1997) 2, pp. 171-89
This paper argues that current period corporate growth rates reflect changes in current expectations about the long run profitability of a firm. This means that growth rates are likely to vary randomly over time. Using data from 271 large, quoted U.K. firms over the period 1976-82, the authors...