Testing of Gibrat’s law by panel data analysis: The case of Turkey
Özet
Gibrat's Law of Proportionate Effect is one of the matters of
debate that continue to be relevant in the finance literature.
Gibrat’s Law argues that there is no relation between the size
of the firms and their growth. In this study, it is aimed to test
whether the Gibrat’s Law is valid in the firms traded in the
Borsa Istanbul (BIST) Basic Metal Industry. For this purpose,
quarterly data of 12 firms regularly traded in the BISTfrom
2010 to 2015 are used. The relationships between the variables
used in the study are tested by using panel data analysis.
According to the findings obtained, Gibrat’s Law is supported
by some variables and it is also rejected by some variables. In
other words, it has been reached to the conclusion that Gibrat’s
Law is partially valid in the BIST Basic Metal Industry sector.
