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The determinants for the survival of firms in the Athens Exchange

Author

Listed:
  • Ioannis Asimakopoulos

    (Bank of Greece)

  • Dionysis Lalountas

    (Ministry of Economy and Finance and University of Patras)

  • Costas Siriopoulos

    (University of Patras)

Abstract

This study examines the survival of firms in the Athens Exchange for the period 1993-2006, by applying a number of alternative parametric and non-parametric models. A company is considered not to survive, if its shares have been either under supervision or their trading is suspended for over six months. According to the results, firms characterised by a high degree of debt or by small size or firms that are active in sectors in which new competitors can penetrate easily, run higher risks of non-survival. By contrast, factors such as the corporate governance and the business cycle do not seem to offer a plausible explanation for the probability of non-survival. In addition, it appears that the risk of non-survival is increasing during the first years of a firm's listing in the stock exchange, peaking after approximately 7 years and then decreasing; this suggests that investments in stocks should have a long-term focus.

Suggested Citation

  • Ioannis Asimakopoulos & Dionysis Lalountas & Costas Siriopoulos, 2008. "The determinants for the survival of firms in the Athens Exchange," Economic Bulletin, Bank of Greece, issue 31, pages 07-30, November.
    • Handle: RePEc:bog:econbl:y:2008:i:31:p:07-30
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    File URL: https://www.bankofgreece.gr/BogEkdoseis/econbull200810.pdf
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    References listed on IDEAS

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    Cited by:

    1. Theodoros M. Mitrakos & George T. Simigiannis, 2009. "The determinants of Greek household indebtedness and financial stress," Economic Bulletin, Bank of Greece, issue 32, pages 7-26, May.

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    More about this item

    Keywords

    survival models; company delisting;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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