HCBE Faculty Presentations
Event Location / Date(s)
Academy of International Business – Southeast USA/Miami, FL
Event Name / Location
Proceedings of the Annual Meeting of the Academy of International Business – Southeast USA “Sustainability, Institutions, and Emerging Markets”
Presentation Date
2014
Document Type
Conference Proceeding
Description
In this analysis, we argue that new firms with international sales will experience a smaller variance in their revenues when compared to comparably-aged firms that have only domestic sales. Further, we claim that this will be the case whenever domestic and international sales of a firm are imperfectly correlated, but have identical variances. Since a smaller variance results in better predictability of revenue, international-selling firms will consequently improve their technical productive efficiency. We employ 7,829 firm-year observations from the 2007-2011 years of the Kauffman Firm Survey (KFS) microdata sample in our analysis. A stochastic frontier model empirically supports the result that technical productive efficiency is positively related to the foreign sales ratio. These results hold after controlling for multiple relevant owner and firm characteristics.
First Page
124
Last Page
124
NSUWorks Citation
Neymotin, Florence and Baek, Hyungkee Young, "International Involvement and Production Efficiency among Small Beginning Firms" (2014). HCBE Faculty Presentations. 1026.
https://nsuworks.nova.edu/hcbe_facpres/1026