The effect of crises on firm exit and the moderating effect of firm size

Celeste Varum and Vera Rocha

Economics Letters, 2012, vol. 114, issue 1, 94-97

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.

Keywords: Survival; Hazard; Firm size; Crisis; Manufacturing; Portugal (search for similar items in EconPapers)
JEL-codes: D21 E32 L25 L60 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:1:p:94-97

DOI: 10.1016/j.econlet.2011.09.015

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