Purpose – The purpose of this paper is two-fold. First, it studies whether output volatility and growth are linked at the firm-level, using data for German firms. Second, it explores whether the link between volatility and growth depends on the degree of credit market imperfections....

Purpose – The purpose of this paper is two‐fold. First, it studies whether output volatility and growth are linked at the firm‐level, using data for German firms. Second, it explores whether the link between volatility and growth depends on the degree of credit market imperfections....