IS EXIT A FIRM FAILURE? FACTS AND THEORY

• Tipo: Artigo em Revista Científica Internacional
• Data: 2010

Autores

Marques, A (Autor) Outra; António Brandão (Autor) FEP

Revista

Título: Acta Oeconomica

Vol. 60 Nº 4

Páginas: 405-426

ISSN: 0001-6373

Editora: Akademiai Kiado

Indexação

ISI Web of Knowledge - 2 Citações

ISI Web of Science

Scopus - 1 Citação

Econlit

Classificação Científica

FOS: Ciências sociais > Economia e gestão

Outras Informações

ID Authenticus: P-003-05S

DOI: 10.1556/aoecon.60.2010.4.3

Abstract (EN): Literature on firms' entry and exit decisions provides empirical evidence that industries with many exits also have many entries. We present a paper that merges some different approaches to the entry and exit of firms and which proposes a new method for looking at the entrepreneurial decision. Our model theoretically supports what empirical evidence has shown and holds; that databases are not yet developed enough to understand the whole exit process. We demonstrate that the possibility of recovering some share of investment costs makes entry more than just a production decision. Within a defined time horizon, a firm can enter the market despite making a loss from production output since the firm's return consists of both sales and investment cost recovery. Entry may be the optimal strategy even when the unit cost is higher than the market price.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 22