Post-entry and Pre-exit Performance of French Manufacturing Firms
Flora BELLONE, Patrick MUSSO, Lionel NESTA, Michel QUÉRÉ
Keywords: entry and exit patterns, firm level data, TFP indexes, market selection,
This paper analyses post-entry and pre-exit performance of Manufacturing firms using a French dataset covering 14 manufacturing industries over the period 1990-2002. The main focus is on market selection mechanisms looking at total factor productivity levels of entrants and exitors relative to incumbent firms. Entrants are found to outperform incumbents, while exitors are less efficient than their surviving counterparts. We nonetheless found key distinguishable features of exit patterns between young and mature firms. Young exiting firms do not display productivity disadvantage relative to incumbent firms. By contrast, mature exiting firms display large and persistent productivity disadvantage relative to their surviving counterparts (shadow of death effect). The determinants of exit differ for entrants and incumbents. Productive inefficiency is a key determinant of the exit of mature firms but hot entrants.
社會科學研究 第60巻 第1号（2009-01-27発行）
（更新日： 2012年 11月 2日）