The Effect of Crises on Firm Exit and the Moderating Effect of Firm Size

Celeste Varum, Vera Rocha

Research output: Contribution to journalJournal articleResearchpeer-review


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.
Original languageDanish
JournalEconomics Letters
Issue number1
Pages (from-to)94-97
Number of pages4
Publication statusPublished - Jan 2012
Externally publishedYes

Cite this