What is the best firm size to invest?

TL;DR

This paper examines how firm size distributions vary across industries in the US, highlighting implications for modeling firm growth and informing investment strategies based on industry-specific size patterns.

Contribution

It documents significant industry-specific differences in firm size evolution, providing new insights for modeling growth and guiding investment decisions.

Findings

Distinct firm size distributions observed across industries

Implications for firm growth modeling constraints

Basis for industry-specific investment strategies

Abstract

Significant differences in the evolution of firm size distribution for various industries in the United States have been revealed and documented. For theoretical considerations, this finding puts major constraints on the modelling of firm growth. For practical purposes, the observed differences create a solid basis for selective investment strategies.