Firm Closure Research Articles

Allocating labor across small firms: Experimental evidence on information constraints

We document interest in labor reallocation among small firm owners in Ghana; 60% and 41%, respectively, self-report willingness to hire or work for the average local firm owner. Firm owners also exhibit high willingness-to-pay for information on a random subset of hiring firms and jobseeking firm owners during a Becker–Degroot–Marschak exercise. Conditionally random variation in access to this information generates immediate labor adjustments within and between firms, though rarely of firm owners themselves, and impacts firm closure 5-months post-intervention. Our findings suggest that labor market information of this kind is both valuable and actionable in our context.

On the relationship between lemon effect and worker characteristics: evidence from Korea

ABSTRACT Layoffs can negatively affect a worker’s wage in the presence of incomplete information on the worker’s productivity (‘lemon effect’). This study examines whether such an effect is present in Korea by utilizing the Korea Labor and Income Panel Study (KLIPS) data from 1998 to 2021 with a two-way fixed effects model. We find supporting evidence for the lemon effect: The drop in wage is generally greater for workers who experience layoff than those displaced due to firm closure. This observation is more evident for those (1) who worked at a small-to-medium firm, (2) who got re-employed in a different industry and occupation, and (3) who were laid off during economic booms at which information asymmetry is more pronounced.

Space and place for health and care – Nationalist discourses in Swedish daily press during the first year of COVID-19

Sweden’s strategy during COVID-19 with restrictions but no firm closure of the society surprised the rest of the world and was questioned, not least by neighbouring countries. This article analyses public discourses on space and place for health and care in the Swedish daily press during the first year of the pandemic, 2020. Critical discourse analysis was conducted on daily press newspaper articles to approach issues of space, place, health and care during the COVID-10 pandemic. The findings suggest three main discourses. First, a powerful discourse on unity against the threat is articulated, urging citizens in Sweden to be loyal in the national space. Secondly, an affirming national reconstructing discourse is manifested, related to constructions of borders of national space but also in relation to places of family life and social contacts to ‘flatten the curve’ and stay healthy. Thirdly, later in the period the overarching discourse of the nation and its loyal citizens was torn apart and increasing tensions were articulated due to, as it appeared, the uncertain actions from the government. This study adds to the literature on a theoretical and practical level. Raising awareness on nationalist discourses in relation to place, space, health, and care could prove important in combating inequalities in the local society as well as when cooperating on an international level.

Does rail transit access affect firm dynamics? Analysis of firm births and closures in Maryland, USA

Firm birth and firm closure are two interrelated dynamics relevant to measuring economic growth, yet most studies focus on firm birth only. Public transportation infrastructure may facilitate firm birth, but it may also avert firm closure through improved accessibility that can consequently lead to increased local density hence agglomeration economies. This study analyzes firm births and firm closures using the National Establishment Time Series (NETS) panel data from Maryland from 1991 to 2009. By examining both birth and closure patterns, this study estimates the likelihood of firm retention for areas in proximity to passenger rail stations of multiple levels of maturity, while controlling for a number of potentially confounding factors. Positive and statistically significant relationships are found between proximity to the passenger rail stations and the rates of firm births in Maryland, regardless of differences in the level of maturity of stations. From 1991 to 2009, areas within close proximity to passenger rail stations in Maryland experienced a wide range of rates of growth in firm density, depending on the year of station opening. The results suggest that well after the introduction of rail stations, areas near passenger rail stations gain belated economic benefits shown by higher likelihood of firm retention around the mature rail stations opened before 1990. In comparison, areas near the less mature stations that opened after 1990 had predominantly lower likelihood of firm retention. Planners and policymakers should be proactive in directing development near rail stations by adopting a variety of measures and policies that support or are at least consistent with transit-oriented development (TOD).

Commentary.

The immersion into the submucosal layer with endoscopic submucosal dissection two decades ago led us to a new era of third-space endoscopy and endoscopic full-thickness resection, whereby many lesions, even with full-thickness muscularis propria involvement, can be safely removed endoscopically. Therefore, endoscopic recognition, characterization, and management of iatrogenic full-thickness mural defects is critical to ensure technical success and safety [1] [2]. The focus has now been increasingly shifting towards developing new devices to close progressively larger defects throughout the gastrointestinal tract. These closure tools, including through-the-scope (TTS) clipping, suture-based, or endoscopic vacuum therapy, need to be adapted to the size and location of the defects. In an experimental study [3] and in this video, Zhang et al. showed the efficacy of novel TTS twin clips (TTS-TCs) for closing wounds ≥ 25 mm, when intertwined with traditional TTS clips, functioning as coadjuvants in reducing submucosal dead space and achieving a firm closure effect. In summary, the TTS-TC holds great promise as a definitive mural closure device as it can be used in a deflated lumen, in situations where access is poor, and promptly without the need for endoscope exchange or reinsertion. Further prospective comparative studies are required to establish efficacy, safety, and cost–effectiveness.

Culture Potential of Mud Crab in Konkan Region of Maharashtra

The Konkan, is a western Indian coastal plain located between the Arabian Sea and the Western Ghats (east). The plain extends roughly 330 miles (530 km) from the Terekhol River between the states of Maharashtra and Goa and the union territory of Daman and Diu in the south to the Daman Ganga River to the north of Mumbai (Bombay). between 45 and 76 kilometers (28 to 47 miles) in width. The adoption of scientific and technical knowledge of ecological and resource potential studies has foreseen the proper utilization of this natural resource for sustainable development. The majority of the farms in the Indian shrimp business have been decimated by infections, primarily WSD. The main issue in shrimp farming is viral infections, which hamper the nation's social and economic development. Socioeconomic estimates of the effects of diseases include issues like losses in production, revenue, employment, investor and customer trust, food shortages, trade disruptions, or firm closure. Due to their attractive traits, such as quick growth, greater size, high fertility, disease resistance, marketability, adaptability to farming techniques, etc., mud crabs are a "candidate species for aquaculture.

Mode of Globalization and Manufacturing Firm Closure in Cameroon

This paper investigates the role of three modes of globalisation – exporting, importing intermediate inputs and foreign ownership – on firm closure. No work has been done examining the complementarity/substitutability of these three globalisation modes on firm closure in a least-developed country. We use firm-level data from Cameroon and find that exporting and importing are beneficial, exports are more important in affecting firm survival than imports and foreign-owned firms tend to have shorter lives. The results highlight the importance of taking complementarity/substitutability of globalisation modes into account when analysing firms’ exit probabilities, while exporting and importing are substitutes in their effects on firm failure.

Job creation or job relocation? Identifying the impact of China's special economic zones on local employment and industrial agglomeration

Since the early 1980s, special economic zones (SEZs) in China have benefited from targeted place-based policies intended to promote local employment and economic growth. What remain poorly understood is whether SEZs serve to give birth to new firms, or rather attract and support the re-establishment of firms from other places. To address this question, this paper examines the impact of SEZs on employment growth in rural counties in China. Using ASIF panel data representing the activity of manufacturing firms for the period 1999 to 2008, this paper assesses the employment effects of SEZs according to firm births, relocation, expansion, and firm closure. By matching counties with future SEZs as comparison groups, the difference-in-differences estimates show that SEZs significantly increase employment in rural counties due to the creation of new firms and the expansion of existing large firms; in contrast, SEZs fail to promote firms to move in and restrain firms from moving out. Further, data analysis reveals significant regional heterogeneity, with the employment effects of SEZs on firm entry strongest for the eastern coastal region. Finally, we confirm that SEZs tend to reduce local industrial agglomeration in the eastern and central regions.

Can strong capital regulation prevent risk-taking from deposit insurance?

Can strong capital regulation prevent risk-taking from deposit insurance? Denmark offers a unique setting providing solid identification for testing risk incentives from deposit insurance under strong capital regulation. The Danish system is a universal system without strong risk exposure regulation. Commercial banks and savings banks have different ownership structures but are subject to the same set of regulations, but savings banks have no incentive to increase risk after the implementation of a deposit insurance scheme. We show that commercial banks did not increase their risk at the introduction of deposit insurance compared to savings banks. We attribute this to strong capital requirements and a firm closure policy. The results also hold for large commercial banks, indicating that the systemic risk did not increase either. Finally, there is no evidence that commercial banks increase their risk by allowing their customers to increase their leverage (risk) compared with customers in savings banks.

Subcutaneous switching suture technique for hernia defect closure during laparoscopic ventral and incisional hernia repair.

IntroductionA vertical penetration of the thread through the abdominal wall for the hernia defect closure in laparoscopic ventral/incisional hernia repair (LVIHR) is difficult especially in the large defect cases when applying the existing techniques.MaterialsSixteen LVIHRs were performed using the suture technique for defect closure we newly developed.Surgical techniqueWith the subcutaneous switching, our technique only requires the suture‐passer and easily enables the vertical penetration of the thread through the abdominal muscular wall even in the large defect cases.DiscussionThe defect closure in LVIHR tends to be complicated in the large defect cases. Thus, we devised this technique for the easy, reliable, and firm closure even in the large defect cases. Although the sample size was currently very small, we consider that the favorable outcomes have been obtained through our technique because any noticeable complications, such as mesh bulging or recurrence, have not been observed currently.

Small Firms amidst COVID-19: Financial Constraints and Role of Government Support

The coronavirus epidemic has severely affected the small and medium enterprises (SMEs), which are more financially constrained compared with large companies. Waking up to this challenge, various countries employed short-run and long-run policies to support SMEs. Using rich firm-level data from 13 countries, this paper explores the impact of the pandemic-led crisis on cash-strapped SMEs and the role that governments played in offsetting the losses in the sector. Our results unambiguously suggest that financially constrained firms are more likely to shut down their operations. The results are robust to concerns arising from endogeneity of finance constraints and also to alternative measures of firm closure and specifications. We also find that government support programmes are more inclusive as they target mostly financially constrained firms. Our final set of analysis reveals that financially constrained firms are more likely to sack workers; and there is clear evidence of gender bias in layoffs.

The Sources of the Wage Losses of Displaced Workers

We evaluate the sources of wage losses of workers displaced due to firm closure by comparison of workers’ wages before and after displacement. We decompose the sources of the wage losses into the contribution of firm, match quality, and job title fixed effects. Sorting into lower paying job titles represents the largest component of the monthly wage loss of displaced workers, accounting for 37 percent of the total average monthly wage loss compared to 31 percent for the firm and 32 percent for the match effects. With respect to the hourly wage losses, job title effects account for 46 percent of the total loss, while firm and match effects contribute in equal shares representing each 27 percent of the loss.

APPLICATION OF HACCP SYSTEM, BASED ON ISO 22000:2005 METHODOLOGY FOR PRODUCING STRAWBERRY CONCENTRATES

This work aims to present a methodology to carry out hazard and control measures assessments to properly establish operational prerequisite programme (oPRPs) and the HACCP plan in the Strawberry concentrates industry according to the ISO 22000 standard, this study focused on the manufacture of Strawberry concentrated, which sold as raw materials to juice filling factories. In this study, the presence of (sterilization, Packing & Firm closure), were identified as critical control points. (CCP) and presence of (Pesticide residues at the receiving stage, Magnetic trap) were identified as Operational Pre-Requisite Program Points. after the implementation of HACCP. This was due to stricter controls in terms of GMPs, GLPs, GHPs and CCPs. Total bacteria count , Yeast & Mold counts were 2.08 , 2.48 (log cfu/cm2) ; respectively but E-Coli ,Salmonella sp. Hepatitis A Virus The results were negative .The heavy metals detected were Fe, Zn, and Mn were positive results and values were reduced by thermal treatment . As, P b, c d, Hg the results were negative and the results were in accordance with CODEX STAN 193-1995, Pesticides residues were detected and the results were in accordance with CODEX STAN 193-1995.The values were reduced by thermal treatment and storage, The water used in the production process has been analyzed physically, chemically and microbiologically; although it is used only for washing fruit. Generally, the study emphasized that the required disciplined approach is best provided by the ISO 22000 procedure applied as an integral element of total quality management principles, which include (HACCP, GMP, GHP, GLP and document control (e.g., ISO 9001 Quality Systems). ISO 22000 FSMS embracing Conclusively, implementation of the ISO 22000 standard in the fruit concentrates industry guarantees food safety and helps improve their competitiveness in the global market.

Job loss, firm-level heterogeneity and mortality: Evidence from administrative data

This paper estimates the effect of job loss on mortality for older male workers with a strong labor force attachment. Using Dutch administrative data, we find that job loss due to firm closure increased the probability of death within five years by a sizable 0.60 percentage points. Importantly, this effect is estimated using a model that controls for firm-level worker characteristics, such as lagged firm-level annual average mortality rates. On the mechanism driving the effect of job loss on mortality, we provide evidence for an effect running through stress and changes in life style.

Structural Basis for a Safety-Belt Mechanism That Anchors Condensin to Chromosomes

SummaryCondensin protein complexes coordinate the formation of mitotic chromosomes and thereby ensure the successful segregation of replicated genomes. Insights into how condensin complexes bind to chromosomes and alter their topology are essential for understanding the molecular principles behind the large-scale chromatin rearrangements that take place during cell divisions. Here, we identify a direct DNA-binding site in the eukaryotic condensin complex, which is formed by its Ycg1Cnd3 HEAT-repeat and Brn1Cnd2 kleisin subunits. DNA co-crystal structures reveal a conserved, positively charged groove that accommodates the DNA double helix. A peptide loop of the kleisin subunit encircles the bound DNA and, like a safety belt, prevents its dissociation. Firm closure of the kleisin loop around DNA is essential for the association of condensin complexes with chromosomes and their DNA-stimulated ATPase activity. Our data suggest a sophisticated molecular basis for anchoring condensin complexes to chromosomes that enables the formation of large-sized chromatin loops.

The impact of habitual entrepreneurial experience on new firm closure outcomes

In this paper, we argue that it is difficult for habitual entrepreneurs to use their experiential knowledge to develop a more viable new firm than novice entrepreneurs. Hindered by the difficulty of disentangling how actions lead to outcomes in low predictive environments such as new firm settings; hampered by the novelty and uncertainty of new firm closure; and misguided by subjective beliefs about their ability, we contend that habitual entrepreneurs close their new firm just as quickly as novice entrepreneurs and are just as likely to go bankrupt. Using large-scale panel data that track new firm closure amongst 7400 new German firms, we find that the new firms run by habitual entrepreneurs close just as quickly as those run by novice entrepreneurs. We also find that habituals are just as likely as novices to see their new business go bankrupt.

The effects of firms’ R&D and innovation activities on their survival: a competing risks analysis

Using a data set of Norwegian firms, an examination is made of the relationship between firms’ R&D activities and their survival. A firm may exit the market through closure, or merger and acquisition (M&A). The analysis is based on a discrete time competing risks model with unobserved heterogeneity. We find that product-innovative firms have a higher probability of exit due to M&A, but only if they also introduce new products into their market. This highlights the importance of differentiating between different groups of product-innovative firms. None of the R&D and innovation activities considered has significant effects on the probability of firm closure.

Job Loss, Firm-Level Heterogeneity and Mortality: Evidence from Administrative Data

This paper estimates the effect of job loss on mortality for older male workers with strong labor force attachment. Using Dutch administrative data, we find that job loss due to sudden firm closure increased the probability to die within five years by a sizable 0.60 percentage points. Importantly, this effect is estimated using a model that controls for firm-level worker characteristics, such as firm-level average mortality rates for mortality during the four years prior to the year of observation. On the mechanism driving the effect of job loss on mortality, we provide evidence for an effect running through stress and changes in life style.

Job Loss, Firm‐Level Heterogeneity and Mortality: Evidence from Administrative Data

This paper estimates the effect of job loss on mortality for older male workers with strong labor force attachment. Using Dutch administrative data, we find that job loss due to sudden firm closure increased the probability to die within five years by a sizable 0.60 percentage points. Importantly, this effect is estimated using a model that controls for firm-level worker characteristics, such as firm-level average mortality rates for mortality during the four years prior to the year of observation. On the mechanism driving the effect of job loss on mortality, we provide evidence for an effect running through stress and changes in life style.

The Effect of Unemployment on Self-Reported Health and Mental Health in Greece from 2008 to 2013: A Longitudinal Study Before and During the Financial Crisis

The current study uses six annual waves of the Longitudinal Labor Market Study (LLMS) covering the 2008-2013 period to obtain longitudinal estimations suggesting statistically significant negative effects from unemployment on self-reported health and mental health in Greece. The specifications suggest that unemployment results in lower health and the deterioration of mental health during the 2008-2009 period compared with the 2010-2013 period, i.e., a period in which the country's unemployment doubled as a consequence of the financial crisis. Unemployment seems to be more detrimental to health/mental health in periods of high unemployment, suggesting that the unemployment crisis in Greece is more devastating as it concerns more people. Importantly, in all specifications, comparable qualitative patterns are found by controlling for unemployment due to firm closure, which allows us to minimize potential bias due to unemployment-health related reverse causality. Moreover, in all cases, women are more negatively affected by unemployment in relation to their health and mental health statuses than are men. Greece has been more deeply affected by the financial crisis than any other EU country, and this study contributes by offering estimates for before and during the financial crisis and considering causality issues. Because health and mental health indicators increase more rapidly in a context of higher surrounding unemployment, policy action must place greater emphasis on unemployment reduction and supporting women's employment.