A survival analysis of Portuguese Firms

Abstract

This paper uses firm level data for Portugal and analyses the impact of financial ratios on the probability of exit. While controlling for financial effects, the relationship between export activity and exit was also studied. Different indicators for export performance were used. The results indicate that financial factors - leverage, profitability and collateral - are relevant to survival. They also indicate that firms that export have a lower hazard ratio but if they become unsuccessful and exit the export market they will have a higher probability of exit when compared to continuous exporters, continuous non-exporters and starters/switcher.