A transactional theory of fluctuations in company size
| dc.creator | Schweiger, A. O. | |
| dc.creator | Buldyrev, S. V. | |
| dc.creator | Stanley, H. E. | |
| dc.date | 2007-03-02 | |
| dc.date.accessioned | 2026-07-07T12:07:56Z | |
| dc.date.available | 2026-07-07T12:07:56Z | |
| dc.description | Detailed empirical studies of publicly traded business firms have established that the standard deviation of annual sales growth rates decreases with increasing firm sales as a power law, and that the sales growth distribution is non-Gaussian with slowly decaying tails. To explain these empirical facts, a theory is developed that incorporates both the fluctuations of a single firm's sales and the statistical differences among many firms. The theory reproduces both the scaling in the standard deviation and the non-Gaussian distribution of growth rates. Earlier models reproduce the same empirical features by splitting firms into somewhat ambiguous subunits; by decomposing total sales into individual transactions, this ambiguity is removed. The theory yields verifiable predictions and accommodates any form of business organization within a firm. Furthermore, because transactions are fundamental to economic activity at all scales, the theory can be extended to all levels of the economy, from individual products to multinational corporations. | |
| dc.description | 8 pages, 4 figures | |
| dc.identifier | https://arxiv.org/abs/physics/0703023 | |
| dc.identifier | http://arxiv.org/abs/physics/0703023 | |
| dc.identifier.uri | http://salesiana.dossiersoluciones.com/handle/123456789/209148 | |
| dc.subject | Physics and Society | |
| dc.subject | Data Analysis, Statistics and Probability | |
| dc.subject | General Finance | |
| dc.title | A transactional theory of fluctuations in company size | |
| dc.type | text |