Type of ownership and the creation of new enterprises in Navarre, Spain: differences in financial survival

摘要

The purpose of this paper is to study whether there exist differences in the financial survival, as measured by their degree of solvency and profitability, of very small firms by type of ownership, i.e. between participatory capitalist firms (PCFs) and employee or labour owned firms (LOFs). The indexes used to measure these two factors include return on assets, return of income, earnings before taxes, dividends and interest, the liquidity ratio, total solvency and an index of perceived risk. The evidence suggests that LOFs tend to perform better in the short-term, but tend to fall behind in more long-term concerns