A. Guariglia
Financial Constraints, Global Engagement, and Firm Survival in the United Kingdom: Evidence from Micro Data
Guariglia, A.; Bridges, S.
Authors
S. Bridges
Abstract
Financial constraints have been found to play an important role on various aspects of firm behavior. Yet, their effects on firm survival have been largely neglected. We use a panel of 61,496 UK firms over the period 1997–2002 to study the effects of financial variables on firms' failure probabilities, differentiating firms into globally engaged and purely domestic. Estimating a wide range of specifications, we find that lower collateral and higher leverage result in higher failure probabilities for purely domestic than for globally engaged firms. This can be seen as evidence that global engagement shields firms from financial constraints.
Citation
Guariglia, A., & Bridges, S. (2008). Financial Constraints, Global Engagement, and Firm Survival in the United Kingdom: Evidence from Micro Data. Scottish Journal of Political Economy, 55(4), 444-464. https://doi.org/10.1111/j.1467-9485.2008.00461.x
Journal Article Type | Article |
---|---|
Publication Date | Sep 1, 2008 |
Deposit Date | May 22, 2009 |
Publicly Available Date | Mar 9, 2010 |
Journal | Scottish Journal of Political Economy |
Print ISSN | 0036-9292 |
Electronic ISSN | 1467-9485 |
Publisher | Wiley |
Peer Reviewed | Peer Reviewed |
Volume | 55 |
Issue | 4 |
Pages | 444-464 |
DOI | https://doi.org/10.1111/j.1467-9485.2008.00461.x |
Keywords | Firm survival, Financial constraints, Global engagement. |
Public URL | https://durham-repository.worktribe.com/output/1528730 |
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