IDEAS home Printed from https://ideas.repec.org/b/zbw/zewexp/130514.html
   My bibliography  Save this book

Ex-post evaluation of the impact of restructuring aid decisions on the viability of aided (non-financial) firms: Final report

Editor

Listed:
  • European Commission, Directorate-General for Competition (Brussels)

Abstract

Financial distress and market exit play a key role in ensuring an efficient allocation and may also have negative social and economic consequences like loss of employment and output in particular areas, loss of technical knowhow and expertise or disruption to important services. In this context, State aid for the rescue and restructuring aid of firms in difficulty is a policy tool that may, in certain circumstances, be appropriate to address the negative consequences of financial distress. However, there are a number of costs associated with rescue and restructuring aid which imply that its use is only appropriate under strictly limited circumstances. Therefore, the Commission allows state aid to firms in difficulty only under strict conditions. The purpose is to evaluate whether, in its ex-ante assessment of the restructuring plans submitted by the Member States, the Commission is effective in achieving the objective of ensuring that restructuring aid (rescue aid is excluded from the scope of the project) is granted only if a restructuring plan is likely to return the firm to long-term viability within a reasonable period of time. Within an international project team ZEW will conduct the econometric analysis.

Suggested Citation

  • European Commission, Directorate-General for Competition (Brussels) (ed.), 2016. "Ex-post evaluation of the impact of restructuring aid decisions on the viability of aided (non-financial) firms: Final report," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 130514.
  • Handle: RePEc:zbw:zewexp:130514
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/130514/1/847830020.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    2. Hotchkiss, Edith Shwalb, 1995. " Postbankruptcy Performance and Management Turnover," Journal of Finance, American Finance Association, vol. 50(1), pages 3-21, March.
    3. Rohan Chindooroy & Patrice Muller & Giovanni Notaro, 2007. "Company survival following rescue and restructuring State aid," European Journal of Law and Economics, Springer, vol. 24(2), pages 165-186, October.
    4. John Moffat, 2015. "Regional Selective Assistance (RSA) in Scotland: Does It Make a Difference to Plant Survival?," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 568-581, April.
    5. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 487-535.
    6. Bruce Lyons, 2009. "Competition Policy, Bailouts, and the Economic Crisis," CPI Journal, Competition Policy International, vol. 5.
    7. Tamoya Christie & David L. Sjoquist, 2012. "New Business Survival in Georgia: Exploring the Determinants of Survival Using Regional Level Data," Growth and Change, Wiley Blackwell, vol. 43(1), pages 110-142, March.
    8. Bemmann, Martin, 2005. "Verbesserung der Vergleichbarkeit von Schätzgüteergebnissen von Insolvenzprognosestudien," Dresden Discussion Paper Series in Economics 08/05, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    9. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    10. Greene, William, 2010. "Testing hypotheses about interaction terms in nonlinear models," Economics Letters, Elsevier, vol. 107(2), pages 291-296, May.
    11. Barbara Sianesi, 2004. "An Evaluation of the Swedish System of Active Labor Market Programs in the 1990s," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 133-155, February.
    12. Bruce Lyons & Minyan Zhu, 2013. "Compensating Competitors or Restoring Competition? EU Regulation of State Aid for Banks During the Financial Crisis," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 39-66, March.
    13. Ela Glowicka, 2006. "Effectiveness of Bailouts in the EU," CIG Working Papers SP II 2006-05, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    14. repec:fth:prinin:455 is not listed on IDEAS
    15. Lechner, Michael, 2011. "The Estimation of Causal Effects by Difference-in-Difference Methods," Foundations and Trends(R) in Econometrics, now publishers, vol. 4(3), pages 165-224, November.
    16. Nulsch, Nicole, 2014. "Is Subsidizing Companies in Difficulties an Optimal Policy? An Empirical Study on the Effectiveness of State Aid in the European Union," IWH Discussion Papers 9/2014, Halle Institute for Economic Research (IWH).
    17. Vicki L. Bogan & Chad M. Sandler, 2012. "Are firms on the right page with Chapter 11? An analysis of firm choices that contribute to post-bankruptcy survival," Applied Economics Letters, Taylor & Francis Journals, vol. 19(7), pages 609-613, May.
    18. Alexandra Tsvetkova & Jean-Claude Thill & Deborah Strumsky, 2014. "Metropolitan innovation, firm size, and business survival in a high-tech industry," Small Business Economics, Springer, vol. 43(3), pages 661-676, October.
    19. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    20. Thorburn, Karin S., 2000. "Bankruptcy auctions: costs, debt recovery, and firm survival," Journal of Financial Economics, Elsevier, vol. 58(3), pages 337-368, December.
    21. Haucap, Justus & Schwalbe, Ulrich, 2011. "Economic principles of state aid control," DICE Discussion Papers 17, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    22. Udo Brixy, 2014. "The Significance of Entry and Exit for Regional Productivity Growth," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1051-1070, June.
    23. Richard Harris & Mary Trainor, 2007. "Impact of Government Intervention on Employment Change and Plant Closure in Northern Ireland, 1983-97," Regional Studies, Taylor & Francis Journals, vol. 41(1), pages 51-63.
    24. Varum, Celeste & Rocha, Vera Catarina & Valente da Silva, Hélder, 2014. "Economic slowdowns, hazard rates and foreign ownership," International Business Review, Elsevier, vol. 23(4), pages 761-773.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:zewexp:130514. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/zemande.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.