-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
DETERMINANTS OF FIRM-LEVEL TECHNICAL EFFICIENCY: EVIDENCE USING STOCHASTIC FRONTIER APPROACH
Download This Article
Evis Sinani, Derek C. Jones, Niels Mygind 
Abstract
By estimating stochastic frontiers we investigate the determinants and dynamics of firm efficiency. We use a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Our main findings are that: (i) foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findings provide support for hypotheses that a firm’s ownership structure and its characteristics such as firm size, labor quality, soft budget constraints and time of privatization are important for its technical efficiency.
Keywords: Stochastic Frontier, Technical Efficiency, Soft Budget Constraints and Ownership Structure
How to cite this paper: Sinani, E., Jones, D. C., Mygind, N. (2008). Determinants of firm-level technical efficiency: evidence using stochastic frontier approach. Corporate Ownership & Control, 5(3-1), 225-239. https://doi.org/10.22495/cocv5i3c1p7
