Liquidity constraints in the first year of trading and firm performance

Autor:	Kevin F. Mole, Graham Hay, George Saridakis
Rok vydání:	2012
Předmět:	Finance business.industry media_common.quotation_subject Control (management) Liquidity crisis Sample (statistics) Market liquidity Censoring (clinical trials) Economics Demographic economics Psychological resilience Business and International Management business media_common
Zdroj:	International Small Business Journal: Researching Entrepreneurship. 31:520-535
ISSN:	1741-2870 0266-2426
DOI:	10.1177/0266242611410091
Popis:	This article uses a survey of new businesses for three regions of England – Buckinghamshire, Shropshire and Tees Valley – and focuses on the effect of liquidity constraints experienced within the first year of trading on firm growth (measured using employment) and ‘partial survival’ (the probability of remaining in activity). We control for a range of firm characteristics, management traits and strategy variables. The empirical framework adopted allows for sample censoring arising from firm exit. Fewer firms in the less wealthy area reported liquidity constraints. Our results suggest that the experience of the first year is critical to the survival and subsequent resilience of the firm but has no effect on growth.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::85b34712b708a52ff16ce341d2bff377 https://doi.org/10.1177/0266242611410091 Zobrazit plný text záznamu