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

José Mata*, Pedro Portugal, Paulo Guimarães

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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.
Original languageEnglish
JournalInternational Journal of Industrial Organization
Volume13
Issue number4
Pages (from-to)459-481
Number of pages23
ISSN0167-7187
DOIs
Publication statusPublished - Dec 1995
Externally publishedYes

Keywords

  • Entry
  • Survival
  • Duration

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