The effect of crises on firm exit and the moderating effect of firm size

The liability of smallness assumption suggests that smaller firms face higher exit risks. However, does it apply during crises? We show that during downturns size reduces firms’ exit risk by less; the hazard rate increases more rapidly in size.

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Year of publication:	2012
Authors:	Amorim Varum, Celeste ; Rocha, Vera Catarina
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 114.2012, 1, p. 94-97
Publisher:	Elsevier
Subject:	Survival \| Hazard \| Firm size \| Crisis \| Manufacturing \| Portugal

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Type of publication:	Article
Classification:	D21 - Firm Behavior ; E32 - Business Fluctuations; Cycles ; L25 - Firm Size and Performance ; L60 - Industry Studies: Manufacturing. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010597225