Abstract
The COVID-19 pandemic had a substantial impact on business dynamics, leading to the temporary or permanent closure of many businesses. By contrast, corporate insolvency proposals and bankruptcies under the Bankruptcy and Insolvency Act declined in 2020. Using a newly developed linked database, this paper presents trends in exits, insolvency proposals and bankruptcies across business and financial characteristics among corporations from 2004 to 2020.
Contrasting differences are found between exits and bankruptcies across firm sizes, industries, and provinces and territories. Small firms are more likely to exit than larger firms, while bankruptcy rates are lower among small firms compared with large firms. There are important diff…
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