Title: New firm survival: a fund flow model approach
Authors: Huyghebaert, Nancy
Gaeremynck, Ann
Roodhooft, Filip
Van de Gucht, Linda
Issue Date: 1998
Publisher: K.U.Leuven - Departement toegepaste economische wetenschappen
Series Title: DTEW Research Report 9809 pages:1-31
Abstract: This paper examines the influence of operating activities and financial and investment decisions in the start-up year on post-entry survival. Using a logit estimation of a funds flow model, we compare starters that failed within nine years with those that did not fail. We find that in the first year failed firms typically generate less cash flows, incur higher labour expenses, use more trade credit and financial debt, and limit inventories. Industry characteristics also significantly influence the survival probability. The timing of the failure is mainly determined by the extend of financial debt and accounts payable in the first year.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center Accountancy, Leuven
Research Center Finance, Leuven

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