Financial constraints, global engagement, and firm survival in the United Kingdom : evidence from micro data.

By Sarah Bridges, Alessandra Guariglia. 2008

170 citations recorded by the source corpus.

Financial constraints have been found to play an important role on various aspects of firm behavior. Yet, their effects on firm survival have been largely neglected. We use a panel of 61,496 UK firms over the period 1997–2002 to study the effects of financial variables on firms' failure probabilities, differentiating firms into globally engaged and purely domestic. Estimating a wide range of specifications, we find that lower collateral and higher leverage result in higher failure probabilities for purely domestic than for globally engaged firms. This can be seen as evidence that global engagement shields firms from financial constraints.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/80d8acebc0658d663c9fa465d6f83392cca0cf9a

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In Accounting

1. Sasan Bakhtiari
2. L. Magnani
3. J.A. Zhang
4. Robert V. Breunig

In Economics and Econometrics

1. Sasan Bakhtiari
2. L. Magnani
3. J.A. Zhang
4. Robert V. Breunig

Citations in the corpus

• Financial Constraints and Firm Export Behavior (2010, unknown): “ Bridges and Guariglia (2008) focus on survival among UK firms.”
• Financial Constraints and Small and Medium Enterprises: A Review* (2020, background): “With international evidence from OECD countries, lack of access to external finance has been shown to be the most direct and robust determinant of firm dynamism amongst SMEs (Pissarides, 1999; Beck and Demirguc-Kunt, 2006; Zehir et al., 2006; Ayyagari et al., 2008; Bridges and Guariglia, 2008; Gill ”