ACKNOWLEDGEMENTS

We test an explanatory model of Internet firm duration after their initial public offerings (IPOs) using a Cox proportional hazards model and a semi-parametric Bayesian survival analysis. The empirical model shows that industry-, firm- and e-commerce related variables, such as the entry of competing IPOs and the selling of digital products or services, can reduce an Internet firm’s hazard rate. In addition, a prosperous economy, as reflected by a high interest rate, also enhances a firm’s chance of survival. The empirical results also suggest that the impact of the explanatory variables on different exit types, such as bankruptcy, merger and acquisition, are different. The results demonstrate a high level of consistency across the econometrics methods used and illustrate the validity of Bayesian analysis as a technique for analyzing drivers of Internet firm survival