The Survival of New Plants: Start-Up Conditions and Post-Entry Evolution

José Mata*, Pedro Portugal, Paulo Guimarães

*Corresponding author af dette arbejde

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This paper examines the longevity of entrants. We find size to be an important determinant of the chances of survival, this being particularly relevant to de novo entrants as compared with entry by established firms. Current size is also found to be a better predictor of failure than initial size. Moreover, our findings indicate that, after controlling for size differences, past growth matters for survival suggesting a partial adjustment process for firm size in the post entry period. Finally, new plants are more likely to live longer if they enter growing industries or industries with little entry activity.
TidsskriftInternational Journal of Industrial Organization
Udgave nummer4
Sider (fra-til)459-481
Antal sider23
StatusUdgivet - dec. 1995
Udgivet eksterntJa


  • Entry
  • Survival
  • Duration