This study investigates firm growth as the post-entry performance of new start-up firms. Using data on Japanese manufacturing firms founded during 1992-1996, the determinants of growth are identified among new start-up firms. The effect is examined, not only of firm-specific characteristics but...

This study shows that spin-offs acquire liquidity from their parent firms through the trade credit channel. We compare the trade credit of spin-offs with that of independent start-ups. Our findings reveal that spin-offs increase accounts payable when their parent firms are major suppliers....