Economic failure and the role of plant age and size: first evidence from German administrative data

Steffen Müller and Jens Stegmaier
Authors registered in the RePEc Author Service: Steffen Mueller

No 201413, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper introduces a large-scale administrative panel data set on corporate bankruptcy in Germany that allows for an econometric analysis of involuntary exits where previous studies mixed voluntary and involuntary exits. Approximately 83 percent of all bankruptcies occur in plants with no more than 10 employees, and 61 percent of all bankrupt plants are not older than 5 years. The descriptive statistics and regression analysis indicate substantial negative age dependence with respect to bankruptcy risk but confirm negative size dependence for mature plants, only. Our results corroborate hypotheses stressing increasing capabilities and positional advantage, both predicting negative age dependence with respect to bankruptcy risk due to productivity improvements. The results are not consistent with the theories explaining age dependence via imprinting or structural inertia." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Beschäftigtenzahl; Betriebsgröße; Betriebsstilllegung; IAB-Betriebs-Historik-Panel; Insolvenz; Unternehmensalter; Unternehmenserfolg; 2007-2010 (search for similar items in EconPapers)
JEL-codes: L10 L20 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014
New Economics Papers: this item is included in nep-eur
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in/as: Small Business Economics, Vol. 44, No. 3 (2015), S. 621-638, doi:10.1007/s11187-014-9616-y

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201413

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