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The Shadow of Death:
Pre-exit Performance of Firms in Japan
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| Kozo Kiyota and Miho Takizawa
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This paper examines the pre-exit productivity performance and asks how productivity affects future survival, using firm-level data in Japan for 1995-2002. We found that firms did not face "sudden death" but there was a "shadow of death." Future exiting firms had lower performance four years before their exit. Besides, within a hair 's breadth of death, the unobserved heterogeneity of firm such as management effort played an important role in the firm survival. |
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| Copyright (C) 2003-2007 by Institute of Economic
Research.All rights reserved. |
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