Publication details

Firm survival in new EU member states

Authors

BAUMÖHL Eduard KOČENDA Evžen IWASAKI Ichiro

Year of publication 2020
Type Article in Periodical
Magazine / Source Economic Systems
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web https://www.sciencedirect.com/science/article/pii/S093936251830075X
Doi http://dx.doi.org/10.1016/j.ecosys.2020.100743
Keywords Firm survival; New EU member states; Survival and exit determinants; Hazards model
Attached files
Description We analyze firm survival determinants in four new European Union member states (the Czech Republic, Hungary, Poland and Slovakia). We employ the Cox proportional hazards model on firm-level data for the period of 2006–2015. We show that in all four countries, less concentrated control of large shareholders, higher solvency and more board directors are linked with an increased probability of firm survival. However, an excessive number of board directors has a detrimental effect. Firms with foreign owners and higher returns on their assets exhibit better survival chances. Conversely, across countries and industries, larger firms and those hiring international auditors have lower probabilities of survival. A number of specific determinants influence firm survival in different ways, emphasizing the importance of country and industry differences when studying firm survival. We also document that, in an economic sense, determinants associated with the legal form, ownership structure and corporate governance show the most beneficial effects with respect to firm survival.

You are running an old browser version. We recommend updating your browser to its latest version.

More info