The impact of state aid on the survival and financial viability of aided firms

Sven Heim, Kai Hüschelrath, Philipp Schmidt-Dengler and Maurizio Strazzeri
Authors registered in the RePEc Author Service: Kai Hueschelrath

No 16-035, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We estimate the causal impact of restructuring aid granted by the European Commission between 2003 and 2012 on the survival and financial viability of aided firms. Using a comprehensive dataset we find that restructuring aid increases a firm's average survival time by 8 to 15 years and decreases the hazard rate by 58 to 68 percent, depending on the definition of firm survival. Further analysis finds strong support that, in the longer run, aid receiving firms have a significantly higher probability to improve their financial viability than the counterfactual group.

Keywords: government policy; state aid; ex-post evaluation; survival; European Union (search for similar items in EconPapers)
JEL-codes: C41 D62 D73 G33 G38 H23 L52 L98 O52 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-bec and nep-com
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The impact of state aid on the survival and financial viability of aided firms (2017)
Working Paper: The impact of state aid on the survival and financial viability of aided firms (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:16035

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