Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121264
Authors: 
Hanousek, Jan
Kočenda, Evžen
Shamshur, Anastasiya
Year of Publication: 
2015
Series/Report no.: 
IOS Working Papers 346
Abstract: 
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.
Subjects: 
efficiency
ownership structure
firms
panel data
stochastic frontier
Europe
JEL: 
C33
D24
G32
L60
L80
M21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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