Exit Strategies and Plant-Closing Decisions: The Case of Steel

Abstract

Several articles show that differences in firm characteristics such as size or diversification may affect plant-closing decisions during an industry's decline such that higher-cost plants survive lower-cost plants. Examination of the plant-closing decisions of integrated steel firms indicates that individual plant characteristics that determine expected revenues and costs explain much of the firms' plant-closing behavior but that firm size may have had some effect at well.

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