Firm survival in new EU member states

0523038 - ÚTIA 2021 RIV NL eng J - Journal Article
Baumöhl, E. - Iwasaki, I. - Kočenda, Evžen
Firm survival in new EU member states.
Economic Systems. Roč. 44, č. 1 (2020), č. článku 100743. ISSN 0939-3625. E-ISSN 1878-5433
Institutional support: RVO:67985556
Keywords : firm survival * new EU member states * survival and exit determinants * hazards model
OECD category: Finance
Impact factor: 3.208, year: 2020
Method of publishing: Open access
http://library.utia.cas.cz/separaty/2020/E/kocenda-0523038.pdf https://www.sciencedirect.com/science/article/pii/S093936251830075X

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 over the period of 2006 to 2015. We show that less concentrated control of large shareholders, higher solvency, and more board directors are linked with increased probability of firm survival in all four countries. However, an excessive number of board directors shows a detrimental effect. Firms with foreign owners and higher returns on their assets exhibit better survival chances. Conversely, larger firms and those hiring international auditors show lower probabilities of survival. A number of determinants specifically influence firm survival in different ways across countries. This fact emphasizes that country differences are important 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.
Permanent Link: http://hdl.handle.net/11104/0307876