The determinants of firms’ survival during the crisis: evidence from the Italian automotive industry

Résumé:

Investigating the determinants of firms’ survival during crisis is a hot topic of current research, but it is particularly interesting for such sectors where the recent trends are strongly negative. The automotive sector in Italy is in troubles for both the international crisis, but also for delocalisation policies of FIAT group. The survival analysis based on a dichotomic model shows that financial health, measured through ratings, and plays an essential role for predicting survival chances. Moreover, the role of technology investigated by DEA technical efficiency scores is strongly positive and strictly correlated with survival. From the geographical viewpoint, results highlight the fragility of automotive firms located in the South and partially isolated from most important northern clusters.