The impact of state aid on the survival and financial viability of aided firms

B-Tier
Journal: European Economic Review
Year: 2017
Volume: 100
Issue: C
Pages: 193-214

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We estimate the causal impact of restructuring aid granted by the European Commission between 2000 and 2012 on the survival and financial viability of aided firms. Using a comprehensive dataset we find that restructuring aid decreases the hazard rate of a market exit by 58–68% and increases firms’ average survival time by 8–15 years, depending on the definition of firm survival. We also find that aid receiving firms have a significantly higher probability to improve their financial viability than the counterfactual group in the longer run.

Technical Details

RePEc Handle
repec:eee:eecrev:v:100:y:2017:i:c:p:193-214
Journal Field
General
Author Count
4
Added to Database
2026-01-29