Journal Article

Financial health, exports, and firm survival: Evidence from a panel of UK and French firms

Economica, 81(323): 419-444

We use a comprehensive fi rm level data set to assess the role of fi rm heterogeneity in the

link between financial health and fi rm survival. The data are for the UK and France,

two countries with di erent fi nancial systems. First, we investigate the importance

of firm heterogeneity for the finance - survival nexus. In particular, the question is

whether fi rms at diff erent stages of export activity (starters, continuers, exiters) react

di fferently to changes in financial variables. Second, we use our data to conduct a cross

country comparison. As concerns firm heterogeneity, we fi nd signi cant diff erences in

the association between fi nancial variables and survival depending on whether a fi rm

is an export starter, exiter or continuer, compared to firms that never export. We

also fi nd that the relationship between fi nance and survival diff ers in the British and

French sub-samples. The most important di fference relates to fi rms that are continuous

exporters, which may be due to diff erences in terms of firm-level characteristics and

fi nancial institutions.


Marina-Eliza Spaliara