Does Ownership Affect Firms' Efficiency? Panel Data Evidence on Italy

35 Pages Posted: 24 Dec 2002

See all articles by Anna Bottasso

Anna Bottasso

University of Genoa

Alessandro Sembenelli

University of Turin - Department of Economics and Financial Sciences G. Prato

Date Written: November 2002

Abstract

This paper provides empirical evidence on the relation between the identity of ultimate owners and technical (in)efficiency by estimating stochastic production frontiers on Italian firm level panel data for twelve manufacturing industries over the 1978-93 period. Privately-owned independent firms are used as reference group and their efficiency is assessed against three alternative forms of ownership: subsidiaries of (privately owned) national business groups, subsidiaries of foreign multinationals, and state owned firms. Even if cross-industry differences obviously exist a common pattern can however be identified. Overall, subsidiaries of foreign multinationals (state owned firms) are found to be more (less) efficient than the reference group. On the contrary, no systematic difference is found between independent firms and subsidiaries of national business groups.

Keywords: Efficiency, Type of Ownership, Panel Data

JEL Classification: C33, D23, D24

Suggested Citation

Bottasso, Anna and Sembenelli, Alessandro, Does Ownership Affect Firms' Efficiency? Panel Data Evidence on Italy (November 2002). Available at SSRN: https://ssrn.com/abstract=362221 or http://dx.doi.org/10.2139/ssrn.362221

Anna Bottasso (Contact Author)

University of Genoa ( email )

Via Vivaldi 5
Genova, 16126
Italy

Alessandro Sembenelli

University of Turin - Department of Economics and Financial Sciences G. Prato ( email )

C. so Unione Sovietica, 218 Bis
Torino, 13820-4020
Italy
+39 011 670 6059 (Phone)
+39 011 670 6062 (Fax)

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