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Corporate efficiency in Europe

Hanousek, Jan, Kočenda, Evžen, Shamshur, Anastasiya (2015) Corporate efficiency in Europe. Journal of Corporate Finance, 32 . pp. 24-40. ISSN 0929-1199. (doi:10.1016/j.jcorpfin.2015.03.003) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:78280)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1016/j.jcorpfin.2015.03.003

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. © 2015 Elsevier B.V.

Item Type: Article
DOI/Identification number: 10.1016/j.jcorpfin.2015.03.003
Uncontrolled keywords: Efficiency; Ownership structure; Firms; Panel data; Stochastic frontier; Europe; cequfin
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Depositing User: Anastasiya Shamshur
Date Deposited: 08 Nov 2019 15:10 UTC
Last Modified: 07 Oct 2021 13:37 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/78280 (The current URI for this page, for reference purposes)
Shamshur, Anastasiya: https://orcid.org/0000-0002-5091-5837
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