Empirical Economics

, Volume 38, Issue 2, pp 281–304

A competing risks analysis of firms’ exit

  • Silviano Esteve-Pérez
  • Amparo Sanchis-Llopis
  • Juan A. Sanchis-Llopis
Original Paper

DOI: 10.1007/s00181-009-0266-x

Cite this article as:
Esteve-Pérez, S., Sanchis-Llopis, A. & Sanchis-Llopis, J.A. Empir Econ (2010) 38: 281. doi:10.1007/s00181-009-0266-x

Abstract

Firms may exit the market in several ways and each form of exit is likely to be caused by different factors (Schary in RAND J Econ 22:339–353, 1991). This paper explores the determinants of different exit routes. Using a sample of Spanish manufacturing firms for 1990–2000, we estimate a competing risks proportional hazards model to identify the factors leading firms to exit the market through (the mutually precluding events of) liquidation/bankruptcy and acquisition/merger. Our results show the existence of a sharp difference between the determinants of these two exit routes in terms of firm and industry characteristics.

Keywords

Exit Liquidation Acquisition Competing-risks hazards model 

JEL Classification

L1 C41 L60 

Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  • Silviano Esteve-Pérez
    • 1
    • 2
  • Amparo Sanchis-Llopis
    • 1
  • Juan A. Sanchis-Llopis
    • 1
  1. 1.Universidad de ValenciaValenciaSpain
  2. 2.Departamento de Economia Aplicada II, Facultad de EconomiaEdificio Departamental OrientalValenciaSpain

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