Corporate efficiency in Europe

Arbeitspapier

Using a stochastic frontier model and a comprehensive dataset, we study factors that affect corporate efficiency in Europe. We find that (i) larger firms are less efficient than smaller firms, (ii) greater leverage contributes to corporate efficiency, and (iii) high competition is less conductive to efficiency than moderate or low competition. In terms of ownership, we find that (iv) efficiency increases when a majority owner must deal with minority shareholders and that (v) domestic majority owners improve efficiency more than foreign majority owners when no minority shareholders are present, but (vi) the opposite is true when minority shareholders hold a substantial fraction of the firm´s equity. In the analysis, we distinguish between a pre-crisis period (2001-2008) and a post-crisis period (2009-2011), and find that our results are sensitive to the period of observation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IOS Working Papers ; No. 346

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Industry Studies: Manufacturing: General ; Industry Studies: Services: General ; Business Economics
• Subject: efficiency ; ownership structure ; firms ; panel data ; stochastic frontier ; Europe

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hanousek, Jan ; Kočenda, Evžen ; Shamshur, Anastasiya
• Event: Veröffentlichung
• (who): Institut für Ost- und Südosteuropaforschung (IOS)
• (where): Regensburg
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/121264
• URN: urn:nbn:de:101:1-201506096069
• Last update: 10.03.2025, 11:41 AM CET