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

A. Bhattacharjee, C. Higson, S. Holly, P. Kattuman

    Research output: Working paper

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    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.
    Original languageEnglish
    Place of PublicationCambridge
    PublisherFaculty of Economics, University of Cambridge
    Number of pages34
    Publication statusPublished - 2002

    Publication series

    NameCambridge Working Papers in Economics
    PublisherFaculty of Economics, University of Cambridge
    No.0206

    Keywords

    • Bankruptcy
    • Acquisitions
    • Macroeconomic instability
    • COMPETING RISKS
    • Cox Proportional Hazards Model

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  • Research Output

    Macroeconomic instability and business exit: determinants of failures and acquisitions of UK firms

    Bhattacharjee, A., Higson, C., Holly, S. & Kattuman, P., 1 Jan 2009, In : Economica. 76, 301, p. 108-131 24 p.

    Research output: Contribution to journalArticle

  • 61 Citations (Scopus)

    Macroeconomic Conditions and Business Exit: Determinants of Failures and Acquisitions of UK Firms

    Bhattacharjee, A., Higson, C., Holly, S. & Kattuman, P., 2007, St. Andrews: Centre for Dynamic Macroeconomic Analysis, 42 p. (CDMA Working Paper Series; no. CDMA07/13).

    Research output: Working paper

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

    Bhattacharjee, A., Higson, C., Holly, S. & Kattuman, P., 2002.

    Research output: Contribution to conferencePaper

  • 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. (Cambridge Working Papers in Economics; No. 0206). Faculty of Economics, University of Cambridge. http://ideas.repec.org/p/cam/camdae/0206.html