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- W2472826437 abstract "The recent financial crisis has heightened the need to understand why some firms are more severely affected by recessions than others and how different firm and industry characteristics affect firms’ vulnerability to such shocks. To study these questions empirically, we complement secondary financial data with primary data from an extensive questionnaire about the effects of the recent recession distributed to 5000 Norwegian CEOs in late 2010. We find that high pre-recession operating profits make firms less vulnerable to recessions, while high pre-recession growth, prerecession debt ratio, firm size, share of durable goods and level of vertical product differentiation make firms more vulnerable to recessions. When comparing effect sizes, we find that other characteristics than pre-recession profits are the most important determinants of the severity of recession impact. We argue that these results indicate that recession can cause the shape of fitness landscapes to change. Acknowledgements: This work is written as part of the research project “Crisis, restructuring and Growth” at the Norwegian School of Economics. The author would like thank this project for financial support and Lasse B. Lien for comments on earlier drafts of this paper. 1 NHH Norwegian School of Economics, Address: Breiviksveien 40, N-5045 Bergen Norway, Tel: +47 97 77 13 62, E-mail: eirik.knudsen@nhh.no SNF Working Paper No 19/11" @default.
- W2472826437 created "2016-07-22" @default.
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- W2472826437 date "2011-06-01" @default.
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- W2472826437 title "Shadow of trouble : the effect of pre-recession characteristics on the severity of recession impact" @default.
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