Is bigger always better? The effect of size on defaults

Analyzing a large sample of Italian firms we find that the probability of default increases with size. This contrasts with the common observation, based on measures of exit from business registry data, that firms' death rate is inversely related to the scale of their operation and suggests a rethinking of the economic role of larger companies.

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Year of publication:	2010
Authors:	Bottazzi, Giulio ; Tamagni, Federico
Publisher:	Pisa : Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)

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Series:	LEM Working Paper Series ; 2010/07
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	640484263 [GVK] hdl:10419/89281 [Handle] RePEc:ssa:lemwps:2010/07 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10010328370