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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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Cited by:
  1. Flora Bellone & Patrick Musso & Lionel Nesta & Michel Quéré, 2006. "Productivity and Market Selection of French Manufacturing Firms in the Nineties," Documents de Travail de l'OFCE 2006-04, Observatoire Francais des Conjonctures Economiques (OFCE).
  2. 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).
  3. HOSONO Kaoru, 2009. "Financial Crisis, Firm Dynamics and Aggregate Productivity in Japan," Discussion papers 09012, Research Institute of Economy, Trade and Industry (RIETI).
  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.

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