Do Public Subsidies Have an Impact on New Firm Survival? An Empirical Study with French Data

Lionel Désiage, Richard Duhautois and Dominique Redor ()

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Abstract: This paper deals with the impact of social contributions and tax cuts (which are considered as operating subsidies) on new firms' probability of survival and economic performance. We use a rich matched database of French firms that were newly created in 1998 and that include entrepreneurs' individual characteristics and firm economic and financial variables. We implement propensity score matching models and show that (i) subsidized firms are more likely to survive after the first two years; (ii) bank loans increase the probability of survival, be they subsidized or not; and (iii) operating subsidies allow firms to increase their turnover. However, no significant effects of these subsidies on other performance criteria are found.

Keywords: firm survival; matched database; propensity score matching; firm performance (search for similar items in EconPapers)
Date: 2010
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00809709v1
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Citations: View citations in EconPapers (11)

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Working Paper: Do Public Subsidies Have an Impact on New Firm Survival? An Empirical Study with French Data (2010)
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