We investigate the determinants of firm survival in 17 emerging European markets during the dual crises of the COVID-19 pandemic and the Russo-Ukrainian war. Using a large dataset of over 59,000 firms and employing a Cox proportional hazards model, the study evaluates how firm-specific...

Using a difference-in-differences design and a global database of startups, investors and deals, we study the effect of exits (IPOs and acquisitions) of unicorn companies - privately held startups valued over USD 1 billion - on the subsequent investment activity of their investors. We find that...

Purpose of the article: The purpose of this article is to assess private equity exit strategies of CEE portfolio companies with regards to desired exit routes, including a cross-border deal aspect and a pre-exit holding period. Methodology/methods: This paper employs secondary data from the...

This paper introduces a New Keynesian multi-sector industry model that integrates firm heterogeneity, entry, and exit dynamics, while considering energy production from both fossil fuels and renewables. We investigate the effects of a sustained increase in fossil fuel prices on sectoral size,...

This paper provides a first empirical assessment of selected key indicators of the degree of competition in Austria in terms of industry concentration, firm-level markups and business dynamics. The analysis is based on firm-level data from 2008 to 2020 in collaboration with OECD Multiprod 2.0...

This paper studies the role of credit constraints in accounting for the dynamics of firm exit during the Great Recession. We present novel firm-level evidence on the role of credit constraints on exit behavior during the Great Recession. Firms in financial distress, with tighter access to...

Over the last three decades, Total Factor Productivity growth in Latin America has disappointed and informality persisted. To shed light on this outcome, we exploit a unique database (by Latin American standards) for Mexico, a country where manufacturing exports grew from 7 to 33 per cent of...

This paper investigates the evolution of aggregate productivity and markups among French manufacturing firms between 1994 and 2016, by focusing on the role of reallocation with respect to both aggregate measures. Firm-level productivity and markups are estimated based on a gross output translog...

This study examines the decline in firm dynamism within the Netherlands, potentially linked to the deceleration of productivity growth. We utilise a rich microdata set covering the period 2006-2016, encompassing nearly all Dutch corporations. This dataset facilitates an evaluation of...

We study the economic consequences of anti-loss trafficking rules, which disallow the use of loss carry-forwards as tax shield after a substantial ownership change. Using staggered changes to these rules, we find that limiting the transfer of tax losses reduces the number of M&As with...

High emigration rates are a challenge in the Western Balkans. High emigration rates might lead to inadequate skilled labor and affect firm creation, capital formation, and economic convergence. The 2021 North Macedonia census reveals that more than 12.4% of North Macedonians live abroad. To...

We discuss a subset of vertical mergers, where the exercise of market power and the efficiencies enabled by a vertical merger reduce rivals’ profits, making rivals’ exit a potentially serious concern. Rivals’ exit can fundamentally alter the welfare analysis of vertical mergers due to the...

Asset purchase programs (APPs) may allow banks to continue lending to low productive borrowers. We use administrative plant and bank data to test whether APPs changed business dynamics in terms of plant entry and exit. Plants in Germany linked to banks with access to an APP are approximately 20%...

Using a text-based measure as a proxy for a firm’s geographically concentrated business interests, we document that geographic concentration reduces the probability of failure risk for newly listed firms. We find that the effect is more pronounced in soft information environments, and in small...

This study comprehensively explores how a firm’s market-specific import experience affects its export market exit. By utilizing Chinese Customs Data over the period of 2000-2016, we empirically find that import experience increases an exporter’s export market exit probability. Further, we...

Communities across the United States are taking advantage of new technologies and governance forms to assert greater control over their energy systems. For decades, energy provision throughout much of the nation was heavily centralized. Even where market-oriented reforms emerged, most consumers...

We quantify the role of firm entry and exit in shaping the output costs of sovereign debt crises. Empirically, higher sovereign risk correlates with less firm entry and more exits. We find evidence of a credit-supply channel explaining the sovereign risk-entry relationship but not for the...

We study how the countercyclicality of temporary layoffs affects aggregate unemployment fluctuations, firm entry and exit dynamics, and macroeconomic fluctuations by building a tractable framework with equilibrium unemployment and endogenous firm entry and exit where firms have a choice over...

We examine whether the patterns of entry and exit established in prior work continue to persist, despite recessions in 2001 and 2008, the introduction of the new Form 990 in 2008, and claims of increased IRS enforcement. We find that charity net entry rates remain positive and consistent over...

The past few decades have witnessed a slowdown in productivity growth in many advanced economies, including Finland. This study examines product switching in Finnish manufacturing firms from 2009 to 2019. The findings reveal a notable trend towards specialization, with more firms focusing on a...

We study foreign firm exit from Russia following the 2022 offensive in Ukraine. Using administrative data on the universe of equity ownership in Russia we find that Western-owned firms that exited Russia in 2022 accounted for 1.5%, 3.0%, and 3.6% of capital stock, revenues, and wage bill in...

This paper explores the impacts of temperature changes on the spatial distribution of industries, focusing on temperature effects on firm entry and exit. Using the information on all firms registered in China, we find a robust inverted U-shaped relationship between temperature and firm entry and...

When facing economic setbacks, managers may continue operating due to the concern that exiting may harm employees who lose their jobs. We propose that managers with higher prosocial preferences set lower exit thresholds and avoid risky investments that increase the risk of having to exit. These...