Company scaling and its deviations: New indicators for enterprise evaluation and bankruptcy prediction.

ABSTRACT: Many studies have shown that scaling laws widely exist in various complex systems, such as living organisms, cities, and online communities. In this research, we found that scaling laws also hold for companies. The macroscopic variables of companies, such as incomes, expenses, or total liability, all have power-law relationships with respect to the sizes of companies, which can be measured by sales, total assets, or the total number of employees. What is more, we also found the power law exponents always deviate from 1. That means large companies naturally have certain advantages, but the widely used financial indicators based on total volume or ratio may not reflect the company's status well because they are also size-dependent. To tackle this problem, this paper proposes a new set of eva

SUBMITTER: Xu J 

PROVIDER: S-EPMC10593223 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature