Article

 

DETERMINANTS OF SURVIVAL: EMPIRICAL EVIDENCE FROM EUROPEAN SOCIAL AND NON-SOCIAL ENTERPRISES (p.125-141)

by

Kristjana JACE, HELLENIC OPEN UNIVERSITY

Leonidas MAROUDAS, UNIVERSITY OF PATRAS

Keywords : Social and non-social enterprises; Bankruptcy; Empirical analysis

JEL classification : G33, L25, L26, L31

Abstract

This study contrasts bankrupt social enterprises with bankrupt non-social enterprises in order to identify distinguishing financial features (if any) influencing the survival prospects of aforementioned groups. To do so we explore a rich sample of 1249 European firms for the period 2008-2017. We provide empirical evidence that certain financial figures such as sales growth and leverage do affect differently social and non-social enterprises. Future research could verify these results using more advanced econometric techniques and a battery of additional sensitivity tests.