Detractors have warned that Private Equity (PE) funds tend to over-lever their portfolio companies because of an option-like payoff, building up debt overhang and widespread bankruptcy risks. Drawing on standard trade-off theory, this paper argues PE-ownership leads to higher levels of optimal...

This paper examines the relationship between firm size, competitive strategy and performance, for the long-lived small firm in Scotland. It uses structural modelling to test the hypothesis that small firms need to remain small if they are to be long-lived. In a three-equation simultaneous model,...

This paper focuses on a new concern in the small firm’s literature, namely what makes a small firm stay in business for a long time. It reflects a change in economic policy, away from an emphasis on volume of start-ups to an emphasis on quality of start-ups. The basic hypothesis is that...

En este trabajo se estima la probabilidad de incumplimiento de las empresas, sus determinantes y el nivel de riesgo crediticio corporativo agregado del sistema financiero. Se utiliza un modelo logit ordenado generalizado con variables explicativas que contienen información a nivel de firmas y...

Les défaillances sont en forte hausse depuis l’été 2008 et tendent à concerner en 2009 des entreprises de taille plus significative.

The number of business failures has risen sharply since summer 2008. In 2009, these failures tended to be observed among larger companies.

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We propose a general class of flexible models for longitudinal data with special emphasis on discrete-time survival data. The model is a finite mixture model where the subjects are allowed to move between components through time. The time-varying probability of component memberships is modeled...