The Shadow of Death: Pre-exit Performance of Firms in Japan
This paper examines the pre-exit productivity performance and asks how productivity affects future survival, controlling for firm size and unobserved firm heterogeneity. Based on firm-level data in Japan for 1995-002, we found that firms did not face "sudden death" but there was a "shadow of death." Future exiting firms had lower performance five years before their exit. Moreover, unobserved firm heterogeneity had a statistically significant effect on firm survival analysis. However, we also found that the effects of unobserved heterogeneity were not very large and thus did not reverse the conclusion.
Year of publication: |
2006-08
|
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Authors: | Kiyota, Kozo ; Takizawa, Miho |
Institutions: | Research Institute of Economy, Trade and Industry (RIETI) |
Saved in:
freely available
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