The geographic determinants of bankruptcy: evidence from Switzerland
Journal
Small Business Economics
ISSN
0921-898X
ISSN-Digital
1573-0913
Type
journal article
Date Issued
2012-07
Author(s)
Abstract (De)
This paper examines the geographic determinants of firm bankruptcy. We employ hazard rate models to study the bankruptcy risk of a firm, allowing for time-varying covariates. Based on a large sample from all geographic areas and the major sectors of the Swiss economy, we find the following main results: (1) Bankruptcy rates tend to be lower in the central municipalities of agglomerations; (2) bankruptcy rates are lower in regions with favorable business conditions (where corporate taxes and unemployment are low and public investment is high); (3) private taxes and public spending at the local level have little impact on bankruptcy rates.
Language
German
Keywords
Bankruptcy - Geography - Agglomeration - Religion - Language - Exit
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
Yes
Publisher
Springer
Publisher place
Dordrecht [u.a.]
Volume
39
Number
1
Start page
222
End page
251
Pages
30
Subject(s)
Eprints ID
211825