Citation
Discussion Paper Details
Please find the details for DP1203 in an easy to copy and paste format below:
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Full Details
Title: The Survival of New Plants: Start-up Conditions and Post-entry Evolution
Author(s): Paulo Guimaraes, José Mata and Pedro Portugal
Publication Date: June 1995
Keyword(s): Duration, Entry and Survival
Programme Area(s): Industrial Organization
Abstract: This paper examines the longevity of entrants. We find size to be an important determinant of the chances of survival, this being particularly relevant to de novo entrants as compared to entry by established firms. Current size is also found to be a better predictor of failure than initial size. Moreover, our findings indicate that, after controlling for size differences, past growth matters for survival suggesting a partial adjustment process for firm size in the post entry period. Finally, new plants are more likely to live longer if they enter growing industries or industries with little entry activity.
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Bibliographic Reference
Guimaraes, P, Mata, J and Portugal, P. 1995. 'The Survival of New Plants: Start-up Conditions and Post-entry Evolution'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1203