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Does the Legal Form Matter for Firm Performance in the MENA Region?

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  • Issam Abdo Ahmad
  • Ali Fakih

Abstract

This paper attempts to study the relationship between firm legal form and firm performance in the Middle East and North Africa Region (MENA) using the World Bank Enterprise Survey (WBES) database. Our analysis shows that open shareholding, closed shareholding, partnership, and limited partnership companies demonstrate an advantage in terms of annual sales and annual productivity growth rates over sole proprietorship firms, and that medium-sized and large-sized firms also demonstrate an advantage over small ones. Our analysis also shows that foreign ownership, exporting activities, the usage of the web in communication with clients and suppliers, and the presence of full-time workers positively affect firm performance. These findings are robust when running the analysis for firms with female participation in ownership. This paper provides directions for strategists targeting at improving the performance of firms.

Suggested Citation

  • Issam Abdo Ahmad & Ali Fakih, 2021. "Does the Legal Form Matter for Firm Performance in the MENA Region?," CIRANO Working Papers 2021s-15, CIRANO.
    • Handle: RePEc:cir:cirwor:2021s-15
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    File URL: https://cirano.qc.ca/files/publications/2021s-15.pdf
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    Cited by:

    1. Mahmoud Arayssi & Ali Fakih & Nathir Haimoun, 2023. "Skill Mismatch, Nepotism, Job Satisfaction, and Young Females in the MENA Region," Econometrics, MDPI, vol. 11(2), pages 1-20, June.
    2. Zahraa Barakat & Ali Fakih, 2021. "Determinants of the Arab Spring Protests in Tunisia, Egypt, and Libya: What Have We Learned?," Social Sciences, MDPI, vol. 10(8), pages 1-15, July.
    3. Abdo Ahmad, Issam & Fakih, Ali & Hammoud, Mohammad, 2023. "Parents' perceptions of their children's mental health during COVID-19: Evidence from Canada," Social Science & Medicine, Elsevier, vol. 337(C).
    4. Pierre Boutros & Ali Fakih, 2022. "Drivers of Research Outcomes in Developing Countries: The Case of Lebanon," Economies, MDPI, vol. 10(3), pages 1-21, March.
    5. Hunjra, Ahmed Imran & Azam, Muhammad & Bruna, Maria Giuseppina & Bouri, Elie, 2023. "A cross-regional investigation of institutional quality and sustainable development," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    6. Al-Fayoumi, Nedal & Bouri, Elie & Abuzayed, Bana, 2023. "Decomposed oil price shocks and GCC stock market sector returns and volatility," Energy Economics, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    Legal Form; Firm Performance; MENA Region;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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