Title: New firm survival: the effects of start-up characteristics
Authors: Huyghebaert, Nancy ×
Gaeremynck, Ann
Roodhooft, Filip
Van de Gucht, Linda #
Issue Date: 2000
Series Title: Journal of Business Finance & Accounting vol:27 issue:5/6 (Summer) pages:627-652
Abstract: This paper empirically examines the influence of operating activities and financial and investment decisions in the start-up year on post-entry survival, taking industry effects into account. Compared to traditional financial ratios, it is found that funds flow measures are superior in identifying those start-up characteristics that are related to subsequent failure. In the first year, failed firms typically generate less cash flows, incur higher labor expenses, use more trade credit and financial debt, limit inventories and are cash constrained. Surprisingly, industry effects do not have a significant impact. From these results, conclusions for public policy are drawn
ISSN: 0306-686X
VABB publication type: VABB-1
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center Finance, Leuven
Research Center Accountancy, Leuven
× corresponding author
# (joint) last author

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