Economics at your fingertips  

Profit-sharing, Technical Efficiency Change and Finance Constraints

Ornella Maietta and Vania Sena
Additional contact information
Vania Sena: University of Leeds, UK

Microeconomics from University Library of Munich, Germany

Abstract: This paper analyses the mechanisms through which profit-sharing schemes may induce debt constrained firms to improve technical efficiency over time to guarantee positive profits. This hypothesis is first formalised in a partial equilibrium framework and then is tested on a sample of Italian traditional and cooperative firms. Technical efficiency change indexes are computed by DEA. These are regressed on a measure of finance constraints to analyse their impact on firms' efficiency growth. The results support the hypothesis that a restriction in the availability of financial resources can affect positively the growth in efficiency in firms with profit-sharing schemes.

Keywords: Finance Constraints; Technical Efficiency and Profit Sharing (search for similar items in EconPapers)
JEL-codes: D1 D2 D3 D4 (search for similar items in EconPapers)
Date: 2004-05-21
Note: Type of Document - pdf. Tables and Figure 1 are in two separate (pdf) files
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in Microeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

Page updated 2022-05-20
Handle: RePEc:wpa:wuwpmi:0405006