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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.

Suggested Citation

  • P.A. Geroski & José Mata & Pedro Portugal, 2007. "Founding Conditions and the Survival of New Firms," DRUID Working Papers 07-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    • Handle: RePEc:aal:abbswp:07-11
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    References listed on IDEAS

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    1. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
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    7. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
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    More about this item

    Keywords

    Survival of firms; founding effects;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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