Statistical Properties of Business Firms Structure and Growth

Europhysics Letters, Vol. 67, No. 3, pp. 498-503, 2004

8 Pages Posted: 27 Nov 2007 Last revised: 24 Dec 2007

See all articles by Kaushik Matia

Kaushik Matia

Boston University - Department of Physics

Dongfeng Fu

Boston University - Department of Physics

Fabio Pammolli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering; CERM Foundation

Sergey Buldyrev

Yeshiva University - Department of Physics

Massimo Riccaboni

KU Leuven - Department of Managerial Economics, Strategy, and Innovation; IMT Institute for Advanced Studies

H. Eugene Stanley

Boston University - Center for Polymer Studies

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 à3B2 = 0.20 ± 0.01. We also find that the average sales of products scales with the firm sales as a power law with exponent à3B1 = 0.57 ± 0.02. And that the average number products of a firm scales with the firm sales as a power law with exponent à3B3 = 0.42 ± 0.02. We compare these findings with the predictions of models proposed till date on growth of business firms.

Suggested Citation

Matia, Kaushik and Fu, Dongfeng and Pammolli, Fabio and Buldyrev, Sergey and Riccaboni, Massimo and Stanley, H. Eugene, Statistical Properties of Business Firms Structure and Growth. Available at SSRN: https://ssrn.com/abstract=1032887

Kaushik Matia

Boston University - Department of Physics ( email )

590 Commonwealth Avenue
Boston, MA 02215
United States

Dongfeng Fu

Boston University - Department of Physics ( email )

590 Commonwealth Avenue
Boston, MA 02215
United States

Fabio Pammolli (Contact Author)

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering ( email )

Via Lambruschini 4C - building 26/A
Milano, 20156
Italy

CERM Foundation ( email )

Via Fiorentina, 1
Siena, Siena 53100
Italy

HOME PAGE: http://www.cermlab.it

Sergey Buldyrev

Yeshiva University - Department of Physics ( email )

500 West, 185th Street
New York, NY 10033
United States

Massimo Riccaboni

KU Leuven - Department of Managerial Economics, Strategy, and Innovation ( email )

Naamsestraat 69 bus 3500
Leuven, 3000
Belgium

IMT Institute for Advanced Studies ( email )

Complesso San Micheletto
Lucca, 55100
Italy

H. Eugene Stanley

Boston University - Center for Polymer Studies ( email )

Boston, MA 02215
United States

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