Skip to main content
Article thumbnail
Location of Repository

Firm survival, uncertainty and financial frictions: Is there a financial uncertainty accelerator?

By Joseph P Byrne, Marina-Eliza Spaliara and Tsoukas Serafeim


Using a large panel of unquoted UK over the period 2000-09, we examine the impact of firm-specific uncertainty on corporate failures. In this context we also distinguish between firms which are likely to be more or less dependant on bank finance as well as public and non-public companies. Our results document a significant effect of uncertainty on firm survival. This link is found to be more potent during the recent financial crisis compared with tranquil periods. We also uncover significant firm-level heterogeneity since the survival chance of bank-dependent and non-public firms are most affected by changes in uncertainty, especially during the recent global financial crisis

Publisher: Heriot-Watt University
Year: 2014
OAI identifier:
Provided by: SIRE
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • (external link)
  • Suggested articles

    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.