On the Geographic and Cultural Determinants of Bankruptcy

Stefan Buehler, Christian Kaiser (christian.kaiser@credit-suisse.com) and Franz Jaeger (franz.jaeger@unisg.ch)
Additional contact information
Christian Kaiser: Credit Suisse
Franz Jaeger: University of St. Gallen

No 701, SOI - Working Papers from Socioeconomic Institute - University of Zurich

Abstract: This paper examines the role of geography and culture in explaining bankruptcy. We adopt survival analyses to model the bankruptcy risk of a firm, allowing for time-varying covariates. Based on a large sample from all major sectors of the Swiss economy, we find the following results: (i) The geographic location of a firm, which is characterized using a core-periphery approach, has a significant impact on its bankruptcy risk; (ii) Variables proxying for the cultural environment of a firm have significant explanatory power; (iii) The results of the previous literature on the standard determinants of bankruptcy are confirmed.

Keywords: bankruptcy; geography; culture; exit (search for similar items in EconPapers)
JEL-codes: C41 R10 Z10 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2007-02, Revised 2007-06
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (9)

Forthcoming in Small Business Economics

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https://www.zora.uzh.ch/id/eprint/52371/1/wp0701.pdf Revised version, 2007 (application/pdf)

Related works:
Working Paper: On the Geographic and Cultural Determinants of Bankruptcy (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:soz:wpaper:0701

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