Does Firm Performance Withstand the Test of Time? New Evidence from a Transactional Economy
Résumé
Few studies have examined how the age of a firm can influence its economic performance over time. This study fills that gap by examining this issue from a large and unique sample of Vietnamese listed companies. Overall, we find evidence of a U-shaped relationship between firm age and firm performance (an initially negative effect of firm age on firm performance before the positive returns of firm age are realised). Our main findings are consistent with the liability of the `market newness' hypothesis. \textcopyright 2021 Informa UK Limited, trading as Taylor & Francis Group.