The proposition – even put forward in many respected textbooks – that small firms are more likely to be sensitive to bankruptcy than larger firms. – Broad-based empirical studies have clearly shown that it is not so much the size of the company as the quality of its financial planning – i.e. the suitability of its management – that is responsible for the frequency of insolvencies.
– See alliances, cross-border, bank size, optimal, assertion strategy, contestability, crisis management groups, bloc of three, three-pillar model, financial conglomerate, Gibrat rule, big bank bonus, size effects, consolidation, megamania, minimum requirements for the design of recovery plans, Penrose theorem, rush to exit, subsidiarity principle, too big to fail principle.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/