The Shadow of Death: Pre-exit Performance of Firms in Japan

Kozo Kiyota and Miho Takizawa

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper examines the pre-exit productivity performance and asks how productivity affects future survival, controlling for firm size and unobserved firm heterogeneity. Based on firm-level data in Japan for 1995-002, we found that firms did not face "sudden death" but there was a "shadow of death." Future exiting firms had lower performance five years before their exit. Moreover, unobserved firm heterogeneity had a statistically significant effect on firm survival analysis. However, we also found that the effects of unobserved heterogeneity were not very large and thus did not reverse the conclusion.

Pages: 19 pages
Date: 2006-08
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ent, nep-sea and nep-tid
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Citations: View citations in EconPapers (13)

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https://www.rieti.go.jp/jp/publications/dp/06e033.pdf (application/pdf)

Related works:
Working Paper: The Shadow of Death: Pre-exit Performance of Firms in Japan (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:06033

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