Macro economic instability and business exit

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

Macro economic instability and business exit

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

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

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 language	English
Title of host publication	Macro Economic Instability and Business Exit
Subtitle of host publication	Determinants of Failures and Acquisitions of Large UK Firms
Publisher	Royal Economic Society
Publication status	Published - 2002

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Cite this

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title = "Macro economic instability and business exit",

abstract = "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.)",

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N2 - 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.)

AB - 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.)

M3 - Chapter

BT - Macro Economic Instability and Business Exit

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ER -

Macro economic instability and business exit

Abstract

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