Does young firm growth persist? The role of firm age

This study investigates serial correlation in growth rates of young firms. Specifically, we examine how past growth affects current growth and how this relationship is moderated by firm age. We use data from four cohorts of Spanish firms tracked over their first 10 years of operation. Results from regression analyses show a positive autocorrelation of growth rates. However, we also find that they become erratic with age. The study contributes to the literature by providing a nuanced view of growth autocorrelation in the case of young firms.