Management-to-staff ratio and a firm's exit

We investigate the predictive ability of management-to-staff ratio for arbitration between liquidation and voluntary dissolution. Using a sample 697 French firms covering period from 2011 to 2017, our hazard model shows that with more managerial staff tend have lower probability exiting through rather than Compared liquidation, dissolution not only provides opportunity organize firm's remaining assets, but it also better preserves managers’ reputation.