New Firm Survival: New Results Using a Hazard Function

A limitation of Audretsch's 1991 study of new-firm survival was the level of aggregation to industries. This procluded linking establishment-specific characteristics, such as organizational structure and size, to post-entry performance. The purpose of this paper is to relate the post-entry perf...

Full description

Saved in:
Bibliographic Details
Published in:The review of economics and statistics 1995-02, Vol.77 (1), p.97-103
Main Authors: Audretsch, David B., Mahmood, Talat
Format: Article
Language:English
Subjects:
Business community
Corporations
Economic theory
Economics
Economies of scale
Financial performance
Health hazards
Industrial economics
Industrial market
Industry
Manufacturers
Manufacturing industries
Market entry
Start up firms
Startups
Statistical analysis
Studies
Success
Survival rates
Technological innovation
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:A limitation of Audretsch's 1991 study of new-firm survival was the level of aggregation to industries. This procluded linking establishment-specific characteristics, such as organizational structure and size, to post-entry performance. The purpose of this paper is to relate the post-entry performance of individual establishments not only to their technological and market structure environments, but also to establishment-specific characteristics. We do this by estimating a hazard duration function for more than 12,000 individual establishments in U.S. manufacturing started in 1976 by tracking their subsequent performance over a ten-year period. We conclude that establishment-specific characteristics, which Audretsch was not able to capture in his earlier study, play an important role in shaping the exposure to risk confronting new establishments.
ISSN:0034-6535
1530-9142
DOI:10.2307/2109995