Defining firm exit : the impact of size and age revisited
AbstractThis paper demonstrates that (1) the negative relationship between initial firm size and failure probability, and (2) the aging pattern of the failure rate are sensitive to the adopted definitions of entry and exit. We use two definitions to measure the timing of entry and exit: an economic definition, based on employment levels, and a legal definition, based on the firm's legal status. While initial size is negatively related to the exit rate under the economic definition, the relation becomes positive under the legal definition. The aging effect is much steeper under the legal than under the economic definition.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/223523.
Date of creation: 2000
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- Jozef Konings & Ana Xavier, 2002.
"Firm Growth and Survival in a Transition Country: Micro Evidence from Slovenia,"
LICOS Discussion Papers
11402, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Konings, Joep & Xavier, Ana, 2002. "Firm growth and survival in a transition country: Micro evidence from Slovenia," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/121576, Katholieke Universiteit Leuven.
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