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

Celeste Varum; Vera Rocha

doi:10.1016/j.econlet.2011.09.015

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

Celeste Varum, Vera Rocha

University of Aveiro

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

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 language	Danish
Journal	Economics Letters
Volume	114
Issue number	1
Pages (from-to)	94-97
Number of pages	4
ISSN	0165-1765
DOIs	https://doi.org/10.1016/j.econlet.2011.09.015
Publication status	Published - Jan 2012
Externally published	Yes

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Cite this

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title = "The Effect of Crises on Firm Exit and the Moderating Effect of Firm Size",

abstract = "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{\textquoteright} exit risk by less; the hazard rate increases more rapidly in size.",

keywords = "Survival, Hazard, Firm Size, Crisis, Manufacturing, Portugal",

author = "Celeste Varum and Vera Rocha",

year = "2012",

month = jan,

doi = "10.1016/j.econlet.2011.09.015",

language = "Dansk",

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AU - Rocha, Vera

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AB - 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.

KW - Survival

KW - Hazard

KW - Firm Size

KW - Crisis

KW - Manufacturing

KW - Portugal

U2 - 10.1016/j.econlet.2011.09.015

DO - 10.1016/j.econlet.2011.09.015

M3 - Tidsskriftartikel

SN - 0165-1765

VL - 114

SP - 94

EP - 97

JO - Economics Letters

JF - Economics Letters

IS - 1

ER -