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The Shadow of Death: Pre-exit Performance of Firms in Japan

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  • Kozo Kiyota
  • Miho Takizawa

Abstract

This paper examines the pre-exit productivity performance and asks how productivity affects future survival, using firm-level data in Japan for 1995-2002. We found that firms did not face "sudden death" but there was a "shadow of death." Future exiting firms had lower performance four years before their exit. Besides, within a hair 's breadth of death, the unobserved heterogeneity of firm such as management effort played an important role in the firm survival.

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File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-204.pdf
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Bibliographic Info

Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d06-204.

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Date of creation: Jan 2007
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Handle: RePEc:hst:hstdps:d06-204

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Keywords: Pre-exit performance; Productivity; Size; Unobserved heterogeneity; Firm survival;

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References

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Citations

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Cited by:
  1. Daniel Fackler & Claus Schnabel & Joachim Wagner, 2012. "Lingering illness or sudden death? Pre-exit employment developments in German establishments," Working Paper Series in Economics 258, University of Lüneburg, Institute of Economics.
  2. Flora Bellone & Patrick Musso & Michel Quéré & Lionel Nesta, 2006. "Productivity and market selection of french manufacturing firms in the nineties," Sciences Po publications info:hdl:2441/7185, Sciences Po.
  3. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," TSE Working Papers 12-335, Toulouse School of Economics (TSE).
  4. KAWAKAMI Atsushi & MIYAGAWA Tsutomu & TAKIZAWA Miho, 2011. "Revisiting Productivity Differences and Firm Turnover: Evidence from product-based TFP measures in the Japanese manufacturing industries," Discussion papers 11064, Research Institute of Economy, Trade and Industry (RIETI).
  5. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2011. "Quality Labels and Firm Survival in the Food Industry," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114263, European Association of Agricultural Economists.
  6. HOSONO Kaoru, 2009. "Financial Crisis, Firm Dynamics and Aggregate Productivity in Japan," Discussion papers 09012, Research Institute of Economy, Trade and Industry (RIETI).

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