The determinants for the survival of firms in the Athens Exchange
Ioannis Asimakopoulos (),
Dionysis Lalountas and
Costas Siriopoulos ()
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Dionysis Lalountas: Ministry of Economy and Finance and University of Patras
Economic Bulletin, 2008, issue 31, 07-30
This study examines the survival of firms in the Athens Exchange for the period 1993-2006, by applying a number of alternative parametric and non-parametric models. A company is considered not to survive, if its shares have been either under supervision or their trading is suspended for over six months. According to the results, firms characterised by a high degree of debt or by small size or firms that are active in sectors in which new competitors can penetrate easily, run higher risks of non-survival. By contrast, factors such as the corporate governance and the business cycle do not seem to offer a plausible explanation for the probability of non-survival. In addition, it appears that the risk of non-survival is increasing during the first years of a firm's listing in the stock exchange, peaking after approximately 7 years and then decreasing; this suggests that investments in stocks should have a long-term focus.
Keywords: survival models; company delisting (search for similar items in EconPapers)
JEL-codes: C14 C34 G30 (search for similar items in EconPapers)
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