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http://dx.doi.org/10.7545/ajip.2021.10.3.330

Long-term Growth Patterns and Determinants of High-growth Startups - Focusing on Korean Gazelle Companies during 2006-2020  

Ko, Chang-Ryong (Department of Economics, Hannam University)
Lee, Jong Yun (Department of Economics and Statistics, Korea University, Seol and Values)
Seol, Sung-Soo (Department of Economics, Hannam University)
Publication Information
Asian Journal of Innovation and Policy / v.10, no.3, 2021 , pp. 330-354 More about this Journal
Abstract
To know the long-term growth patterns and determinants of successful startups, 15-year (2006-2020) panel data of 252 companies that had a growth rate of over 20% every year in the last three years were used. In the first analysis, statistics on the period required to designate a gazelle company or listed on the stock market were examined. In addition, five long-term growth patterns were presented. In the panel analysis, the R&D intensity, operating profit ratio, size, and age of the company were pointed out as determinants of growth. The operating profit margin and R&D intensity have a positive effect on growth. Gibrat's law was not supported, but an inverted U-shape was observed. Jovanovic's law was confirmed. Although many studies tend not to point to profitability as a determinant of long-term growth, this is an important long-term growth factor of a company. The operating profit ratio was used in this study.
Keywords
High-growth; Gazelle company; Successful startups; Growth pattern; Long-term growth determinant;
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