Legal forms, organizational architecture, and firm failure: a large survival analysis of Russian corporations

Abstract

In this paper, we trace the survival status of more than 110,000 Russian firms from 2007-2015 and examine the relationship between legal forms of incorporation and firm survivability across industries and different periods of economic crisis and growth. Applying the Cox proportional hazards model, we find an optimal legal form that maximizes the probability of firm survival: closed joint-stock companies and those adopting limited liability survive longer than open joint-stock companies, partnerships, or cooperatives. This relationship is robust across periods of boom and recession and across industries.

Distressed Acquisitions: Evidence from European Emerging Markets

“…In Europe, in the early 1990s, multinational firms from developed economies launched numerous acquisitions in connection with massive privatizations of state-owned companies during the economic transformation of Central and Eastern European (CEE) countries (Estrin et al, 2009;Meyer et al, 2009;Iwasaki and Mizobata, 2018). Recently, the global financial crisis (GFC) has hit hard CEE companies (Hanousek et al, 2015), leading many of them into financial distress and forcing some to exit the market (Baumöhl et al, 2019;Iwasaki and Kim, 2020;Iwasaki et al, 2021). Under these circumstances, takeovers by stronger counterparts represent a viable solution for restructuring the assets of distressed firms, as a takeover may serve as an emergency-resolution mechanism instead of bankruptcy (Stiglitz, 1972).…”

Survival Analysis of Logistics Service Providers: An Empirical Study of Chengdu, Area in China

“…There is empirical evidence showing that the ownership structure of firms matters in survival chances. Some authors have found that foreign-owned plants have a higher probability of exit than their domestic-owned counterparts in Ireland and Spanish manufacturing firms [24] [25] [26]. So, we proposed the following hypothesis:…”

Institutions, financial development, and small business survival: evidence from European emerging markets

“…However, many firms entering the market at that time soon found it difficult to survive (McDermott, 2004). Moreover, an uneasy transformation process, along with the ensuing GFC, negatively impacted firms' performance and consequent survivability (Estrin et al, 2009;Hanousek et al, 2015;Baumöhl et al, 2019;Iwasaki and Kim, 2020).…”

“…Specifically, we account for key firm-specific characteristics such as firm size and age, ownership structure, and financial performance. These factors affect the general ability of a firm to survive (Alfaro and Chen, 2012;Kočenda and Hanousek, 2012;Baumöhl et al, 2020;Iwasaki and Kim, 2020). At the same time, these factors, especially the size and age of the firm associated with the ability to attract financial resources, also affect small business failures; thus, they are repeatedly examined as control variables in prior studies.…”