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

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

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 conference › Paper

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 language	English
Publication status	Published - 2002
Event	Royal Economic Society Annual Conference 2002 - Warwick, United Kingdom Duration: 25 Mar 2002 → 27 Mar 2002 http://web.warwick.ac.uk/res2002/

Conference

Conference	Royal Economic Society Annual Conference 2002
Country/Territory	United Kingdom
City	Warwick
Period	25/03/02 → 27/03/02
Internet address	http://web.warwick.ac.uk/res2002/

Access to Document

http://ideas.repec.org/p/ecj/ac2002/27.html

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/Preprint › Working paper

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Cite this

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title = "Macro Economic Instability and Business Exit: Determinants of Failures and Acquisitions of Large UK Firms",

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.)",

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T1 - Macro Economic Instability and Business Exit

T2 - Royal Economic Society Annual Conference 2002

AU - Bhattacharjee, Arnab

AU - Higson, C.

AU - Holly, Sean

AU - Kattuman, P.

PY - 2002

Y1 - 2002

N2 - 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.)

AB - 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.)

M3 - Paper

Y2 - 25 March 2002 through 27 March 2002

ER -

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

Abstract

Conference

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Research output

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

Cite this