How Firms Survive in European Emerging Markets: A Survey

Figures & data

Figure 1. Number of observations, failed firms, and exit rates.

Table 1. ~TC~

Variable name	Definition	Source
Country-level variables
Rule of law	Normalized 2006 value of World Governance Indicator of rule of law	World Bank
Democracy	Adjusted and normalized 2006 value of the index of democracy	Freedom House
National governance	Adjusted and normalized 2006 value of the index of national governance	Freedom House
Civil society	Adjusted and normalized 2006 value of the index of civil society	Freedom House
Corruption control	Adjusted and normalized 2006 value of the index of corruption	Freedom House
Comprehensive IQ index	First component of PCA of institutional quality indicators	Authors’ computation
Banking reform	Normalized 2006 value of the index of banking sector reform	EBRD
Enterprise reform	Normalized 2006 value of the index of enterprise reform	EBRD
Liquid liabilities	World Bank indicator of liquid liabilities to GDP	World Bank
Private credit	World Bank indicator of credit to private sector to GDP	World Bank
Bank credit	World Bank indicator of private credit by deposit money banks to GDP	World Bank
Bank assets	World Bank indicator of deposit money bank assets to total bank assets	World Bank
Market capitalization	Indicator of stock market capitalization to GDP	EBRD
Stock trading volume	Indicator of stock trading volume to market capitalization	EBRD
Comprehensive FD index	First component of PCA of financial development indicators	Authors’ computation
Firm-level variables
Legal form		Orbis
Joint-stock company	Dummy for joint-stock companies	Orbis
Limited liability company	Dummy for limited liability companies	Orbis
Partnership	Dummy for partnerships	Orbis
Cooperative	Dummy for cooperatives	Orbis
Ownership Structure
Foreign ownership	Dummy for firms with foreign ownership	Orbis
State ownership	Dummy for firms with state ownership	Orbis
Large shareholding	Number of dominant or block shareholders	Orbis
Corporate governance
Board of directors	Number of members of board of directors	Orbis
International audit firm	Dummy for having an international auditor	Orbis
Firm performance
ROA	Profit before tax/total assets × 100 (%)	Orbis
Gross margin	Gross profit/operating revenue × 100 (%)	Orbis
Profit margin	Profit before tax/operating revenue × 100 (%)	Orbis
Solvency ratio	Shareholder funds/total assets × 100 (%)	Orbis
Liquidity ratio	Current assets – stocks/current liabilities × 100 (%)	Orbis
Labor productivity	Natural logarithm of operating revenue per employee in Euros	Orbis
Listed	Dummy for being listed on a stock exchange	Orbis
Size	Natural logarithm of total assets in Euros	Orbis
Age	Years in operation at the end of 2006	Orbis

Figure 2. Average impact of selected covariates.

The mean values of hazard ratios are obtained from the five core articles and are averaged across different baseline estimation results.

Table A1 ~TC~

Variable	Larger firms	Small businesses	V4 firms	Banks	Service firms
Country-level variables	-	-	-	-	-
Rule of law	✔	✔
Democracy	✔	✔			✔
National Governance	✔	✔
Civil society	✔	✔
Corruption control	✔	✔
Comprehensive IQ index	✔	✔
Banking reform	✔			✔
Enterprise reform	✔				✔
Liquid liabilities		✔		✔
Private credit		✔		✔
Bank credit				✔
Bank assets		✔
Market capitalization		✔
Stock trading volume		✔
Comprehensive FD index		✔		✔
Firm- level variables	-	-	-	-	-
Legal form	-	-	-	-	-
Joint-stock company	✔	✔	✔	✔
Limited liability company	✔	✔	✔	✔
Partnership	✔	✔	✔
Cooperative	✔	✔	✔
Ownership Structure	-	-	-	-	-
Foreign ownership	✔	✔	✔	✔	✔
State ownership	✔	✔	✔	✔
Large shareholding	✔		✔		✔
Corporate governance	-	-	-	-	-
Board of directors	✔		✔	✔
International audit firm			✔
Firm performance	-	-	-	-	-
ROA	✔		✔	✔	✔
Gross margin	✔		✔
Profit margin		✔		✔
Solvency ratio	✔	✔	✔	✔	✔
Liquidity ratio				✔
Labor productivity			✔		✔
Listed	✔	✔	✔	✔
Size	✔	✔	✔	✔	✔
Age	✔	✔	✔	✔	✔