IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v27y2000i5-6p627-651.html
   My bibliography  Save this article

New Firm Survival: The Effects of Start‐up Characteristics

Author

Listed:
  • Nancy Huyhebaert
  • Ann Gaeremynck
  • Filip Roodhooft
  • Linda M.. Van de Gucht

Abstract

This paper empirically examines the influence of operating activities and financial and investment decisions in the start‐up year on post‐entry survival, taking industry effects into account. Compared to traditional financial ratios, we find that funds flow measures are superior in identifying those start‐up characteristics that are related to subsequent failure. In the first year, failed firms typically generate less cash flows, incur higher labour expenses, use more trade credit and financial debt, limit inventories and are cash constrained. Surprisingly, industry effects do not have a significant impact. From these results, we draw conclusions for public policy.

Suggested Citation

  • Nancy Huyhebaert & Ann Gaeremynck & Filip Roodhooft & Linda M.. Van de Gucht, 2000. "New Firm Survival: The Effects of Start‐up Characteristics," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(5‐6), pages 627-651, June.
    • Handle: RePEc:bla:jbfnac:v:27:y:2000:i:5-6:p:627-651
    DOI: 10.1111/1468-5957.00328
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-5957.00328
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-5957.00328?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaiser, Ulrich & Kuhn, Johan Moritz, 2020. "Value of Publicly Available, Textual and Non-textuThe al Information for Startup Performance Prediction," IZA Discussion Papers 13029, Institute of Labor Economics (IZA).
    2. N. Dewaelheyns & C. Van Hulle, 2004. "The Impact of Business Groups on Bankruptcy Prediction Modeling," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 623-645.
    3. Qingyang Wu & Siyu Ren & Yao Hou & Zaoli Yang & Congyu Zhao & Xusheng Yao, 2024. "Easing financial constraints through carbon trading," Empirical Economics, Springer, vol. 67(2), pages 655-691, August.
    4. Kaiser, Ulrich & Kuhn, Johan M., 2020. "The value of publicly available, textual and non-textual information for startup performance prediction," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    5. Tom Franck & Nancy Huyghebaert & Bert D’Espallier, 2010. "How Debt Creates Pressure to Perform when Information Asymmetries are Large: Empirical Evidence from Business Start‐ups," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(4), pages 1043-1069, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:27:y:2000:i:5-6:p:627-651. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.