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Merge or Fail? The Determinants of Mergers and Bankruptcies in Switzerland, 1995-2000

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Author Info
Stefan Buehler () (Socioeconomic Institute, University of Zurich)
Christian Kaiser () (University of St. Gallen)
Franz Jaeger () (University of St. Gallen)

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Abstract

This paper examines the determinants of mergers and bankruptcies, using firm level data from the Swiss Business Census and the Dun & Bradstreet exit database for Switzerland (1995-2000). Employing duration analysis, we find considerable differences in the determinants of mergers and bankruptcies, in particular with respect to firm size, location and the impact of macroeconomic conditions. Our results support the notion that mergers are often undertaken to seize growth opportunities.

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File URL: http://www.soi.uzh.ch/research/wp/2005/wp0506.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by University of Zurich, Socioeconomic Institute in its series Working Papers with number 0506.

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Length: 18 pages
Date of creation: Mar 2005
Date of revision:
Publication status: Published in Letters 90(1), 2005, pages 88-95
Handle: RePEc:soz:wpaper:0506

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Related research
Keywords: merger; bankruptcy; failure; survival; exit;

Other versions of this item:

Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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