Economic and Financial Determinants of Firm Bankruptcy: Evidence from the French Food Industry

Lilia Aleksanyan and Jean-Pierre Huiban

No 205381, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: Despite the strong resilience of the French food industry during the recent economic crisis, the bankruptcy rate for this sector has dramatically increased since 2010. This paper focuses on the economic and financial determinants of firm exit due to bankruptcy in the French food industry and compares them with those for other manufacturing industries. Based on a large sample of firm level data for the period 2001-2012, we show that the bankruptcy risk pattern differs between food industry firms and other manufacturing firms. Firm productivity is an important determinant of a firm's probability of going bankrupt; productivity begins deteriorating 3 years before a failure. Controlling for firm productivity, we also show that credit cost has a positive and significant impact on the probability of bankruptcy. However, firm financing conditions have a lower effect on bankruptcy than productivity.

Keywords: Agribusiness; Financial Economics; Industrial Organization; Productivity Analysis (search for similar items in EconPapers)
Pages: 2
Date: 2015
New Economics Papers: this item is included in nep-bec, nep-eff and nep-sbm
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Economic and financial determinants of firm bankruptcy:evidence from the French food industry (2016)
Journal Article: Economic and financial determinants of firm bankruptcy: evidence from the French food industry (2016)
Journal Article: Economic and financial determinants of firm bankruptcy: evidence from the French food industry
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205381

DOI: 10.22004/ag.econ.205381

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