IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/82706.html
   My bibliography  Save this paper

The Effect of Firm Ownership Structure on Performance: A case study of Eastern Europe and Central Asian Countries

Author

Listed:
  • Bekena, Sisay Menji

Abstract

This paper uses World Bank Enterprise Survey 2009 and 2013 panel data for Central Asia and Eastern Europe to estimate the casual effects of firm ownership structure on firm performance measured by the growth rates of sales, labor productivity and employment. The study uses treatment effect models to compute the average treatment effects. Estimation results using propensity score matching show that on average private firms have sales and employment growth rates that are 6 percentage points higher compared to public firms. The effect is statistically significant at conventional significance levels. Labor productivity growth is similar across public and private firms. The key conditional independence assumption necessary for the validity of the matching models is found to be valid and the computed casual effects are consistent across the different treatment effect models.

Suggested Citation

  • Bekena, Sisay Menji, 2017. "The Effect of Firm Ownership Structure on Performance: A case study of Eastern Europe and Central Asian Countries," MPRA Paper 82706, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82706
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/82706/1/MPRA_paper_82706.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Curtiss, Jarmila & Ratinger, Tomas & Medonos, Tomas, 2012. "Ownership and Investment Behaviour in Transition Countries: A Case Study of Collective and Corporate Farms in the Czech Republic," Working papers 122841, Factor Markets, Centre for European Policy Studies.
    2. Panayotis Kapopoulos & Sophia Lazaretou, 2007. "Corporate Ownership Structure and Firm Performance: evidence from Greek firms," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 144-158, March.
    3. John Asker & Joan Farre-Mensa & Alexander Ljungqvist, 2011. "Comparing the Investment Behavior of Public and Private Firms," NBER Working Papers 17394, National Bureau of Economic Research, Inc.
    4. J. David Brown & John S. Earle & Almos Telegdy, 2006. "The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 61-99, February.
    5. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, 2010. "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications - Books, The World Bank Group, number 2693.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samuel Sebsibie & Workineh Asmare & Tessema Endalkachew, 2015. "Agricultural Technology Adoption and Rural Poverty: a Study on Smallholders in Amhara Regional State, Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 23(2), December.
    2. Lu, Susan Feng & Dranove, David, 2013. "Profiting from gaizhi: Management buyouts during China’s privatization," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 634-650.
    3. Hannah Gichungi & Beatrice Muriithi & Patrick Irungu & Gracious Diiro & John Busienei, 2021. "Effect of Technological Innovation on Gender Roles: The Case of Fruit Fly IPM Adoption on Women’s Decision-Making in Mango Production and Marketing in Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 407-426, June.
    4. Martin, Will, 2021. "Tools for measuring the full impacts of agricultural interventions," IFPRI-MCC technical papers 2, International Food Policy Research Institute (IFPRI).
    5. Sheetal Sharma & Edwin van Teijlingen & José M Belizán & Vanora Hundley & Padam Simkhada & Elisa Sicuri, 2016. "Measuring What Works: An Impact Evaluation of Women’s Groups on Maternal Health Uptake in Rural Nepal," PLOS ONE, Public Library of Science, vol. 11(5), pages 1-16, May.
    6. Fresenbet Zeleke & Girma T. Kassie & Jema Haji & Belaineh Legesse, 2021. "Would Market Sheds Improve Market Participation and Earnings of Small Ruminant Keepers? Evidence from Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 470-485, June.
    7. Andrea Lasagni & Annamaria Nifo & Gaetano Vecchione, 2015. "Firm Productivity And Institutional Quality: Evidence From Italian Industry," Journal of Regional Science, Wiley Blackwell, vol. 55(5), pages 774-800, November.
    8. He, Jie (Jack) & Tian, Xuan, 2013. "The dark side of analyst coverage: The case of innovation," Journal of Financial Economics, Elsevier, vol. 109(3), pages 856-878.
    9. O'Toole, Conor M. & Morgenroth, Edgar L.W. & Ha, Thuy T., 2016. "Investment efficiency, state-owned enterprises and privatisation: Evidence from Viet Nam in Transition," Journal of Corporate Finance, Elsevier, vol. 37(C), pages 93-108.
    10. Stepan Jurajda & Juraj Stancik, 2012. "Foreign Ownership and Corporate Performance: The Czech Republic at EU Entry," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 62(4), pages 306-324, August.
    11. Jawid, Asadullah & Khadjavi, Menusch, 2019. "Adaptation to climate change in Afghanistan: Evidence on the impact of external interventions," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 64-82.
    12. Ghulam, Yaseen, 2021. "Institutions and firms’ technological changes and productivity growth," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    13. Hang Gao & Joseph Marchand & Tao Song, 2013. "The Supply and Demand Factors Behind the Relative Earnings Increases in Urban China at the Turn of the 21st Century," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(1), pages 121-143, March.
    14. Hanousek, Jan & Kočenda, Evžen & Mašika, Michal, 2012. "Firm efficiency: Domestic owners, coalitions, and FDI," Economic Systems, Elsevier, vol. 36(4), pages 471-486.
    15. Martínez-Zarzoso, Inmaculada & Oueslati, Walid, 2016. "Are deep and comprehensive regional trade agreements helping to reduce air pollution?," University of Göttingen Working Papers in Economics 292, University of Goettingen, Department of Economics.
    16. Gábor Békés & Jörn Kleinert & Farid Toubal, 2009. "Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary," The World Economy, Wiley Blackwell, vol. 32(10), pages 1408-1433, October.
    17. Gitonga, Zachary M. & De Groote, Hugo & Kassie, Menale & Tefera, Tadele, 2013. "Impact of metal silos on households’ maize storage, storage losses and food security: An application of a propensity score matching," Food Policy, Elsevier, vol. 43(C), pages 44-55.
    18. Panagiotidis, Theodore & Printzis, Panagiotis, 2020. "What is the investment loss due to uncertainty?," Global Finance Journal, Elsevier, vol. 45(C).
    19. Tilman Brück & Neil T. N. Ferguson, 2020. "Money can’t buy love but can it buy peace? Evidence from the EU Programme for Peace and Reconciliation (PEACE II)," Conflict Management and Peace Science, Peace Science Society (International), vol. 37(5), pages 536-558, September.
    20. David Grover & Swaroop Rao, 2020. "Inequality, unemployment, and poverty impacts of mitigation investment: evidence from the CDM in Brazil and implications for a post-2020 mechanism," Climate Policy, Taylor & Francis Journals, vol. 20(5), pages 609-625, May.

    More about this item

    Keywords

    Firm ownership; Treatment Effects;

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:82706. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.