Corporate Efficiency in Europe

Jan Hanousek, KoÄ enda, Evžen and Anastasiya Shamshur
Authors registered in the RePEc Author Service: Evžen Kočenda

No 10500, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Efficiency; Europe; Firms; Ownership structure; Panel data; Stochastic frontier (search for similar items in EconPapers)
JEL-codes: C33 D24 G32 L60 L80 M21 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-eff and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
https://cepr.org/publications/DP10500 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Corporate efficiency in Europe (2015)
Working Paper: Corporate Efficiency in Europe (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:10500

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP10500

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().