Determinants of Exit by Bankruptcy in Industrial Sectors in Sweden
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
The purpose of this thesis is to examine the determinants of exit by bankruptcy in industrial sectors in Sweden. The dataset which is used gives a complete picture of the pattern of exit by bankruptcy on industry level in both manufacturing and service sectors in Sweden during the period 2004-2008. The importance of some industry structural factors such as scale economies, profitability, tangible and intangible capital intensity and industrial market growth rate for exit by bankruptcy are investigated. The use of two types of exit rates by bankruptcy (by firms and by employees) contributes to the current research. The two-way fixed effects model is used for the dependent variable of exit rate calculated by number of bankruptcies and total number of registered firms. The results show that only the long-term industrial market growth rate affects the exit rate by bankruptcy and it has a negative effect. The GLS in the two-way random effects model is used for the dependent variable of exit rate calculated by number of employees of bankruptcies. The results in this model, however, show that the existence of scale economies, more profitability, and investments in tangible and intangible capital assets all deter the number of bankruptcy.
Place, publisher, year, edition, pages
Exit, Bankruptcy, Industrial sectors, Panel data, Sweden
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-41489OAI: oai:DiVA.org:kth-41489DiVA: diva2:444106