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CORPORATE PRODUCTIVITY GROWTH: CHAMPIONS, LEADERS, AND LAGGARDS |
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| Authors: | PAUL GEROSKI TOBIAS KRETSCHMER CHRIS WALTERS |
| Affiliation: | Geroski:;Competition Commission, Victoria House, Southampton Row, London WC1B 4AD, UK;and Professor of Economics, London Business School, Regent's Park, London NW14SA. Kretschmer:;Professor of Management and Communication Economics, Institute for Communication Economics, Munich School of Management, Ludwig-Maximilians-University of Munich, Schackstr. 4 /III, D-80539 Munich, Germany. Phone +49-89-2180-6270, Fax +49-89-2180-16541, E-mail;and Research Associate, Centre for Economic Performance, London School of Economics, Houghton Street, London WC2A 2AE, UK. Walters:;Senior Competition Economist, Competition Commission, Victoria House, Southampton Row, London WC1B 4AD, UK. Phone +4420 7271 0100, Fax +44 20 7271 0367, E-mail |
| Abstract: | This paper examines the relative productivity growth performance of a sample of large UK firms between 1986 and 1995. We find that superior productivity growth, however measured, is not persistent—firms with high productivity growth rates relative to (say) the average in 1 yr are as likely as not to display below-average performance in the following year. Studying the determinants of the length of time for which firms outperform their peers, we find 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. ( JEL D24, O33, O4) |
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