Financial agglomerations in the UK: geographical cluster size and firm performance

Kuah, Adrian;Tse, Terence;Esposito, Mark

Abstract

This paper reinforces the premise that cluster size has beneficial influence on performance by using data of 17,535 UK financial services companies.The research issue is whether having a closely related industry cluster is truly beneficial to member firms' profitability, as recent studies alleged that a large cluster creates congestion and has negative implications for performance.However, a myriad of performance measures were used and notably many still consider financial performance as key measures. By segregating a cluster into its competing and related sectors, I find they work in opposite directions on promoting firm growth prospects and financial performance. I argue related sectors in a cluster allow the firm to draw pecuniary benefits to better its financial performance, while the competing sector promotes its growth prospects.

Journal

N/A

Publication Name

N/A

Volume

ISBN/ISSN

2250-3587

Edition

N/A

Issue

N/A

Pages Count

Location

N/A

Publisher

Institute for Competitiveness

Publisher Url

N/A

Publisher Location

N/A

Publish Date

N/A

Url

N/A

Date

N/A

EISSN

N/A

DOI

N/A