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This paper studies the upper tail distribution of the business group size in Taiwan. Our empirical study wasbased on the top 100 Taiwan business groups ranked in annual revenue, asset and employees during 2003 to2009. We find that the group size distribution is fatter-tailed and gradually deviated from the Zipf’s Law.Moreover, the law of proportional effect is violated.Specifically, our result shows that the larger businessaccompanies larger growth rate.

Business Size Extension and Zipf’s Law: The Case of Top Corporate Groups in Taiwan