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Financial health, exports, and firm survival: Evidence from UK and French firms

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  • Holger Gőrg
  • Marina-Eliza Spaliara

Abstract

We use firm level data to assess the role of exporting in the link between financial health and firm survival. The data are for the UK and France. We examine whether firms at different stages of export activity (starters, exiters, continuers, switchers) react differently to changes in financial variables. In general, export starters and exiters experience much stronger adverse effects of financial constraints for their survival prospects. By contrast, the exit probability of continuous exporters and export switchers is less negatively affected by financial characteristics. These relationships between exporting, finance and survival are broadly similar in the British and French sub-samples.

Suggested Citation

  • Holger Gőrg & Marina-Eliza Spaliara, 2012. "Financial health, exports, and firm survival: Evidence from UK and French firms," Working Papers 2012_09, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2012_09
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    4. Michele Bernini & Jun Du & James H. Love, 2016. "Explaining intermittent exporting: Exit and conditional re-entry in export markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(9), pages 1058-1076, December.
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    7. Byrne, Joseph P & Spaliara, Marina-Eliza & Serafeim, Tsoukas, 2014. "Firm survival, uncertainty and financial frictions: Is there a financial uncertainty accelerator?," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-62, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Baumöhl, Eduard & Iwasaki, Ichiro & Kočenda, Evžen, 2019. "Institutions and determinants of firm survival in European emerging markets," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 431-453.
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    10. Holger Breinlich & Patrick Nolen & Greg C Wright, 2020. "Is publicly-reported firm-level trade data reliable? Evidence from the UK," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-10, November.
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    12. Joachim Wagner, 2016. "Credit Constraints and Exports: A Survey of Empirical Studies Using Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 12, pages 401-421, World Scientific Publishing Co. Pte. Ltd..
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    18. Majune Kraido Socrates & Eliud Moyi & Kamau Gathiaka, 2020. "Explaining Export Duration in Kenya," South African Journal of Economics, Economic Society of South Africa, vol. 88(2), pages 204-224, June.
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    More about this item

    Keywords

    survival; exit; financial health; exports;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • G3 - Financial Economics - - Corporate Finance and Governance

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