Statistical Properties in Inactive Rate of Firms

In this chapter, we investigate the dependence of the inactive rate of firms on the following main financial variables: total revenue, net income, total assets, and net assets. We used worldwide information on German, Spanish, French, British, Italian, Japanese, Korean, and Dutch firms recorded in the 2015 and 2016 editions of the comprehensive Orbis database of listed and unlisted firms. We confirmed that the inactive rate of firms is constant regardless of the size of the financial variables in the large-scale data range. In the mid-scale data range, the inactive rate of firms increases under a power law as the financial variables decrease. The boundary between the large- and mid-scale data ranges corresponds to the boundary between the power-law and log-normal distributions of the financial data.