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New Firm Survival: Industry versus Firm Effects

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Author Info
David B. Audretsch (The Georgia State University)
Patrick Houweling (Centre for Advanced Small Business Economics, Erasmus University Rotterdam)
A. Roy Thurik () (EIM Small Business Research and Consultancy and Erasmus University Rotterdam)

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Abstract

Recent studies show that the likelihood of survival differs significantly across firms. Both firm and industry characteristics are hypothesized to account for this heterogenity. Using a longitudinal database of manufacturing firms we investigate whether firm or industry characteristics dominate. Our evidence suggests that both firm- and industry-specific characteristics shape new-firm survival during the first years subsequent to entry. However, in the longer run, most of the industry factors have little influence on the likelihood of survival, but firm-specific characteristics still exert a considerable influence in shaping firm survival rates.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 97-063/3.

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Date of creation: 13 Jun 1997
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Handle: RePEc:dgr:uvatin:19970063

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Web page: http://www.tinbergen.nl/

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Wagner, Joachim, 1994. "The Post-entry Performance of New Small Firms in German Manufacturing Industries," Journal of Industrial Economics, Blackwell Publishing, vol. 42(2), pages 141-54, June. [Downloadable!] (restricted)
  2. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May. [Downloadable!] (restricted)
  3. Audretsch, David B. & Mata, Jose, 1995. "The post-entry performance of firms: Introduction," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 413-419, December. [Downloadable!] (restricted)
  4. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February. [Downloadable!] (restricted)
  5. John R. Baldwin & Paul K. Gorecki, 1990. "Firm Entry and Exit in the Canadian Manufacturing Sector," Working Papers 767, Queen's University, Department of Economics.
  6. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-50, August. [Downloadable!] (restricted)
  7. Mata, Jose, 1994. " Firm Growth during Infancy," Small Business Economics, Springer, vol. 6(1), pages 27-39, February.
  8. Arrighetti, Alessandro, 1994. " Entry, Growth and Survival of Manufacturing Firms," Small Business Economics, Springer, vol. 6(2), pages 127-37, April.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, vol. 28(1), pages 87-104, January. [Downloadable!] (restricted)
  2. Harald Strotmann, 2002. "Determinanten des Überlebens von Neugründungen in der badenwürttembergischen Industrie. Eine empirische Survivalanalyse mit amtlichen Betriebsdaten," IAW Discussion Papers 06, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
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