Title: Defining firm exit : the impact of size and age revisited
Authors: Van de Gucht, Linda
Konings, Joep
Roodhooft, Filip
Issue Date: 2000
Publisher: K.U.Leuven - Departement toegepaste economische wetenschappen
Series Title: DTEW Research Report 0014 pages:1-27
Abstract: This paper demonstrates that (1) the negative relationship between initial firm size and failure probability, and (2) the aging pattern of the failure rate are sensitive to the adopted definitions of entry and exit. We use two definitions to measure the timing of entry and exit: an economic definition, based on employment levels, and a legal definition, based on the firm's legal status. While initial size is negatively related to the exit rate under the economic definition, the relation becomes positive under the legal definition. The aging effect is much steeper under the legal than under the economic definition.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center Accountancy, Leuven
Research Center Finance, Leuven
Research Center of Monetary and Information Economics, Leuven

Files in This Item:
File Description Status SizeFormat
OR_0014.pdf Published 516KbAdobe PDFView/Open


All items in Lirias are protected by copyright, with all rights reserved.