Macro economic instability and business exit

Arnab Bhattacharjee, C. Higson, Sean Holly, P. Kattuman

    Research output: Chapter in Book/Report/Conference proceedingChapter


    Using data over a 34-year span on UK quoted firms, this paper seeks to identify the factors that increase the likelihood of exit of firms. Firms may disappear through the mutually precluding events of bankruptcies and acquisitions. We use a competing-risks hazard model to determine characteristics leading to each outcome. Hazard models make use of the data on timing of these alternative outcomes and we exploit this to focus attention on how the hazards change over the business cycles, conditional on the post-listing age of the firm. We find that the volatility in macro environment has a role in determining, in different ways, the hazard of firms going bankrupt or being acquired.

    (This abstract was borrowed from another version of this item.)

    Original languageEnglish
    Title of host publicationMacro Economic Instability and Business Exit
    Subtitle of host publicationDeterminants of Failures and Acquisitions of Large UK Firms
    PublisherRoyal Economic Society
    Publication statusPublished - 2002


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