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The Survival of Cultural Firms: A Study of Multiple Accounting Parameters in Spain

Author

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  • Ma del Pilar Muñoz Dueñas

    (School of Business Studies, University of Vigo, 36208 Vigo, Spain)

  • Antonio Vaamonde Liste

    (School of Business Studies, University of Vigo, 36208 Vigo, Spain)

  • Maria do Rosário Cabrita

    (Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial (UNIDEMI), Department of Mechanical and Industrial Engineering, Faculty of Science and Technology (FCT), NOVA School of Science and Technology, New University of Lisbon, 2829-516 Caparica, Portugal)

Abstract

Cultural firms are an important development factor in economic and social terms. Their objectives are often aimed at maintaining and disseminating the traditions and values of societies. The prosperity of these firms in a nation ensures that its tangible and intangible cultural heritage is made known to other nations and generations. Despite their importance, little is known about their survival and the factors associated with it. This paper analyses data from 6951 Spanish firms, of which 2105 are cultural firms. We have studied the survival of non-cultural firms in comparison with cultural firms and also the impact that profitability, solvency and indebtedness may have on their survival. We have used the Kaplan–Meier method in order to assess their survival and the Harrington–Fleming test and the Cox regression model to check the statistical significance of variables. These variables are key factors influencing the survival of cultural enterprises. Particularly, low solvency in firms increases by twenty the risk of disappearance. This paper contributes to literature highlighting some of the key factors for the survival of cultural enterprises. It provides administrations with a roadmap in order to implement measures for the promotion of the cultural industry, favouring the process of enhancement of cultural heritage.

Suggested Citation

  • Ma del Pilar Muñoz Dueñas & Antonio Vaamonde Liste & Maria do Rosário Cabrita, 2020. "The Survival of Cultural Firms: A Study of Multiple Accounting Parameters in Spain," Sustainability, MDPI, vol. 12(3), pages 1-14, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:1159-:d:317119
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