Macro Economic Instability and Business Exit: Determinants of Failures and Acquisitions of Large UK Firms

Arnab Bhattacharjee, C. Higson, Sean Holly, P. Kattuman

    Research output: Contribution to conferencePaper

    Abstract

    Using data over a 34-year span on UK quoted firms, this paper seeks to identify the factors that increase the likelihood of exit of firms. Firms may disappear through the mutually precluding events of bankruptcies and acquisitions. We use a competing-risks hazard model to determine characteristics leading to each outcome. Hazard models make use of the data on timing of these alternative outcomes and we exploit this to focus attention on how the hazards change over the business cycles, conditional on the post-listing age of the firm. We find that the volatility in macro environment has a role in determining, in different ways, the hazard of firms going bankrupt or being acquired.

    (This abstract was borrowed from another version of this item.)

    Original languageEnglish
    Publication statusPublished - 2002
    EventRoyal Economic Society Annual Conference 2002 - Warwick, United Kingdom
    Duration: 25 Mar 200227 Mar 2002
    http://web.warwick.ac.uk/res2002/

    Conference

    ConferenceRoyal Economic Society Annual Conference 2002
    CountryUnited Kingdom
    CityWarwick
    Period25/03/0227/03/02
    Internet address

    Fingerprint Dive into the research topics of 'Macro Economic Instability and Business Exit: Determinants of Failures and Acquisitions of Large UK Firms'. Together they form a unique fingerprint.

  • Research Output

    • 1 Working paper

    Macro Economic Instability and Business Exit: Determinants of Failures and Acquisitions of Large UK Firms

    Bhattacharjee, A., Higson, C., Holly, S. & Kattuman, P., 2002, Cambridge: Faculty of Economics, University of Cambridge, 34 p. (Cambridge Working Papers in Economics; no. 0206).

    Research output: Working paper

    Open Access
    File
  • Cite this

    Bhattacharjee, A., Higson, C., Holly, S., & Kattuman, P. (2002). Macro Economic Instability and Business Exit: Determinants of Failures and Acquisitions of Large UK Firms. Paper presented at Royal Economic Society Annual Conference 2002, Warwick, United Kingdom. http://ideas.repec.org/p/ecj/ac2002/27.html