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Founding Conditions and the Survival of New Firms

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  • P.A. Geroski
  • José Mata
  • Pedro Portugal

Abstract

We analyze the effects of founding conditions on the survival of new firms. We allow the effects of founding conditions to be transitory and estimate how long such effects last. Our findings indicate that founding effects are important determinants of exit rates. Moreover, in most cases, their effect on survival seems to persist without much of an attenuation for several years after the founding of the firm.

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File URL: http://www3.druid.dk/wp/20070011.pdf
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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 07-11.

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Date of creation: 2007
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Handle: RePEc:aal:abbswp:07-11

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Web page: http://www.druid.dk/

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Keywords: Survival of firms; founding effects;

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  1. Pfeiffer, Friedhelm & Reize, Frank, 2000. "Business start-ups by the unemployed -- an econometric analysis based on firm data," Labour Economics, Elsevier, Elsevier, vol. 7(5), pages 629-663, September.
  2. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, Econometric Society, vol. 50(3), pages 649-70, May.
  3. Steven Fazzari & R. Glenn Hubbard & Bruce C. Petersen, 1987. "Financing Constraints and Corporate Investment," NBER Working Papers 2387, National Bureau of Economic Research, Inc.
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