The impact of state aid on the survival and financial viability of aided firms

Sven Heim, Kai Hüschelrath, Philipp Schmidt-Dengler and Maurizio Strazzeri
Authors registered in the RePEc Author Service: Kai Hueschelrath

European Economic Review, 2017, vol. 100, issue C, 193-214

Abstract: We estimate the causal impact of restructuring aid granted by the European Commission between 2000 and 2012 on the survival and financial viability of aided firms. Using a comprehensive dataset we find that restructuring aid decreases the hazard rate of a market exit by 58–68% and increases firms’ average survival time by 8–15 years, depending on the definition of firm survival. We also find that aid receiving firms have a significantly higher probability to improve their financial viability than the counterfactual group in the longer run.

Keywords: Public policy; State aid; Ex-post evaluation; Survival analysis; EU (search for similar items in EconPapers)
JEL-codes: C41 D62 D73 G33 G38 H23 L52 L98 O52 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Working Paper: The impact of state aid on the survival and financial viability of aided firms (2017)
Working Paper: The impact of state aid on the survival and financial viability of aided firms (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:100:y:2017:i:c:p:193-214

DOI: 10.1016/j.euroecorev.2017.08.005

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