The Validity of Gibrat's Law: Focus on Gender Composition of Top Management

The study is focused on relationship between firm size and firm growth in the context of gender composition of top management of the firms. In accordance with Gibrat's law, firm growth is the stochastic process that does not depend on firm size. The aim of this study is to find out if the confirmation or rejection of Gibrat's law validity might be related to the gender composition of management. The data for 20,073 Czech firms in the period 2008 2013 is used To examine the relationship between firm size and firm growth, the linear auto-regression model is applied The study concludes that the gender composition of top management is not the key factor affecting the validity of Gibrat's law. The validity of Gibrat's law is rejected at the aggregate level and also for both men-led and women -led firms. Smaller firms tend to growth faster than their bigger counterparts.