What matters for corporate failures in Asia? Exploring the role of firm-specific characteristics during the Asian crisis

Spaliara, M.E. and Tsoukas, S. (2013) What matters for corporate failures in Asia? Exploring the role of firm-specific characteristics during the Asian crisis. Structural Change and Economic Dynamics, 26, pp. 83-96. (doi:10.1016/j.strueco.2012.12.002)

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Abstract

Empirical investigation of business failures has considered the effects of macroeconomic conditions and financial healthiness in isolation. Using a panel of five Asian economies - Indonesia, Korea, Malaysia, Singapore and Thailand - over the period 1995--2007 we analyse the link between firm survival and financial healthiness during the 1997-98 Asian crisis. We show that the sensitivity of survival to financial indicators is significantly higher during the crisis compared to tranquil periods. In addition, we find that the effect of financial indicators is quantitatively and qualitatively more important in economies with less developed stock exchanges.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Tsoukas, Professor Serafeim and Spaliara, Dr Marina Eliza
Authors: Spaliara, M.E., and Tsoukas, S.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Structural Change and Economic Dynamics
Publisher:Elsevier
ISSN:0954-349X
ISSN (Online):1873-6017
Published Online:04 January 2013
Copyright Holders:Copyright © 2013 Elsevier
First Published:First published in Structural Change and Economic Dynamics 26:83-96
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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