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Managerial psychology and transport firms efficiency: a stochastic frontier analysis

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  • Sami Jarboui

Abstract

This paper presents an original essay that explains how managerial psychology affects the efficiency of transport firms. Stochastic frontier analysis methods are applied to our sample over a 12-year period from 2000 to 2011, where we aim to detect the potential effect of a well-documented bias in behavioral economic and finance theory: the managerial optimism bias. We initiate a debate concerning the potential role of Chief Executive Officers’ (CEO) irrationalities in explaining the inefficiency of public transport operators, such as the shortfall between the optimal production function and the observed production level. We find strong evidence of the negative impact of CEOs’ optimism bias on transport firms’ technical efficiency, meaning that managerial optimism decreases transport firms’ technical efficiency. Copyright Springer-Verlag Berlin Heidelberg 2016

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  • Sami Jarboui, 2016. "Managerial psychology and transport firms efficiency: a stochastic frontier analysis," Review of Managerial Science, Springer, vol. 10(2), pages 365-379, March.
    • Handle: RePEc:spr:rvmgts:v:10:y:2016:i:2:p:365-379
    DOI: 10.1007/s11846-014-0149-1
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    Cited by:

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    2. Sami Jarboui, 2022. "Operational and environmental efficiency of U.S. oil and gas companies towards energy transition policies: A comparative empirical analysis," Australian Economic Papers, Wiley Blackwell, vol. 61(2), pages 234-257, June.
    3. Özlem O. Akdeniz & Hussein A. Abdou & Ali I. Hayek & Jacinta C. Nwachukwu & Ahmed A. Elamer & Chris Pyke, 2024. "Technical efficiency in banks: a review of methods, recent innovations and future research agenda," Review of Managerial Science, Springer, vol. 18(11), pages 3395-3456, November.
    4. Mohammad Mahdi Mozaffari & Mohammadreza Taghizadeh-Yazdi & Abdolkarim Mohammadi-Balani & Salman Nazari-Shirkouhi & Seyed Mohammad Asadzadeh, 2023. "Modelling the effect of traffic safety culture on road fatalities: linear and nonlinear stochastic frontier analysis," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(3), pages 1049-1061, June.

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    More about this item

    Keywords

    Managerial psychology; Transport firm; Technical efficiency; Stochastic frontier analysis; C14; C67; C83; D24; L92; N70; R40;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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