Firm dynamics variation in profitability across Canadian firms of different sizes, 2000 to 2009

Lafrance, Amélie. (Author). Statistics Canada, Economic Analysis Division (Added Author). Canadian Electronic Library (Firm) (Added Author).

Summary: Are small firms more profitable than large firms? This paper uses a longitudinal firm-level dataset to explore the financial performance of firms across size classes, and across industries and provinces during the 2000-to-2009 period. It also examines the volatility of profitability across firm size classes. The results show that the relationship between firm size and profitability follows an inverted u-shaped curve, profitability rises up to a relatively small firm size class and falls after that threshold has been reached. This relationship prevails across most industries and provinces and over most of the post-2000 period. Furthermore, on an intragroup basis, smaller firms tend to have much more variability in profit rates.

Record details

ISBN: 9781100209920 (electronic bk.)
Physical Description: electronic resource
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1 electronic text (28 p.) : digital file.
Publisher: Ottawa, Ont. : Statistics Canada, Economic Analysis Division, 2012

Content descriptions

General Note:	"July 2012." Issued as part of the desLibris documents collection.
Bibliography, etc. Note:	Includes bibliographical references (p. 28).
Formatted Contents Note:	Abstract -- Executive summary -- 1. Introduction -- 2. Profitability measures and data source -- 3. Business sector profitability rates -- 3.1 Industry dimension -- 3.2 Regional dimension -- 4. Profitability and firm size -- 4.1 Business sector dimension -- 4.2 Profitability and firm size, by industry and province -- 4.3 Industry -- 4.4 Region -- 5. Variations in profitability, by firm size -- 6. Conclusion -- 7. Appendix -- 7.1 Data source -- References.
System Details Note:	Mode of access: World Wide Web.