Corporate Productivity Growth: Leaders and Laggards

28 Pages Posted: 11 Sep 2005

See all articles by Paul A. Geroski

Paul A. Geroski

London Business School; Centre for Economic Policy Research (CEPR)

Tobias Kretschmer

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management); Centre for Economic Policy Research (CEPR)

Chris F. Walters

London Business School

Date Written: August 2005

Abstract

This paper considers the relative productivity growth performance of a balanced sample of 80 large UK firms over 9 years (1986-95), using two different benchmarks from which to compute productivity growth differences. We find that there is almost no persistence in superior productivity growth performance however measured - firms that enjoy high productivity growth rates relative to (say) the average in one year, are as likely as not to display sub-average performance in the following year. Our examination of the determinants of the length of time in which particular firms outperform the average suggests that innovative firms carrying low debt who are relatively free from financial distress are likely to display whatever persistently superior performance we observe in the data.

Keywords: Productivity growth, corporate performance

JEL Classification: D24, O33, O4

Suggested Citation

Geroski, Paul A. and Kretschmer, Tobias and Walters, Chris F., Corporate Productivity Growth: Leaders and Laggards (August 2005). Available at SSRN: https://ssrn.com/abstract=796606 or http://dx.doi.org/10.2139/ssrn.796606

Paul A. Geroski

London Business School ( email )

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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Tobias Kretschmer (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Kaulbachstr. 45
Munich, DE 80539
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Chris F. Walters

London Business School ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom

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