Which Firms Exit and Why? An Analysis of Small Firm Exits in Japan

Which Firms Exit and Why? An Analysis of Small Firm Exits in Japan This paper examines exit behaviour of small firms by using data from The Survey of Retirement of Small Firm Managers, which provides information on exit and post-exit behaviour of Japanese small firms and their managers. First, it is shown that small firm exits occur not just because of economic difficulties in their business (‚economic-forced exit’) but also for various other reasons (‚non-economic-forced exit’). Logit estimates show that the probability of economic-forced exit is significantly higher if the manager is relatively young and male, the firm has loans from a financial institution, its sales are tending to decrease, and so on. It is also shown that a rather large proportion of managers continue to work after exit, and this proportion, especially that of employed workers, is higher in the case of economic-forced exits. These results indicate the potential importance of distinguishing these two classes of exits in exit studies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Which Firms Exit and Why? An Analysis of Small Firm Exits in Japan

Loading next page...
Springer US
Copyright © 2006 by Springer Science+Business Media, Inc.
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
Publisher site
See Article on Publisher Site


You’re reading a free preview. Subscribe to read the entire article.

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches


Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.



billed annually
Start Free Trial

14-day Free Trial