Acceso usuarios
Rohan Chindooroy, Patrice Muller, Giovanni Notaro
We study the survival of companies having received rescue or restructuring State aid in the EU. Our analysis is based on a newly constructed dataset on the awards of State aid that were approved individually by the Commission between 1995 and 2003. We first provide a descriptive analysis of the companies that received the aid, of the aid awarded and of the mortality of these firms. We then present a regression analysis that determines the influence of various factors, such as the type of aid and market conditions, on the subsequent survival of aid-receiving companies. We find high mortality among companies who received rescue aid. The amount of State aid and the availability of other aid instruments seem to have no impact on survival. Thirdly, we find evidence that if a company was in a condition of difficulty because of market decline or poor management, such company would be more likely to survive after receiving rescue or restructuring aid.
