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Patterns Of Corporate Governance And Technical Efficiency In Italian Manufacturing

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  • Sergio Destefanis

    (Universita' di Salerno, Italy)

  • Vania Sena

    (University of Leeds, UK)

Abstract

The purpose of this paper is to analyse the relationship between the corporate governance system and technical efficiency in Italian manufacturing. We use a non-parametric frontier technique (DEA) to derive technical efficiency measures for a sample of Italian firms taken from 9 manufacturing industries. These measures are then related to the characteristics of the corporate governance system. Two of these characteristics turn out to have a positive impact on technical efficiency: the percentage of the company shares owned by the largest shareholder and the fact that a firm belongs to a pyramidal group. Interestingly, a trade-off emerges between these influences, in the sense that one is stronger in industries where the other is weaker.

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Bibliographic Info

Paper provided by EconWPA in its series Finance with number 0405026.

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Date of creation: 21 May 2004
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Handle: RePEc:wpa:wuwpfi:0405026

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Cited by:
  1. Gaganis , Chrysovalantis & Hasan, Iftekhar & Pasiouras , Fotios, 2013. "Efficiency and stock returns: Evidence from the insurance industry," Research Discussion Papers 14/2013, Bank of Finland.
  2. Sailesh Tanna & Fotios Pasiouras & Matthias Nnadi, 2011. "The Effect of Board Size and Composition on the Efficiency of UK Banks," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(3), pages 441-462, November.
  3. Sumit Majumdar & Kunal Sen, 2010. "Corporate borrowing and profitability in India," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 33-45.
  4. Hammond, Christopher J., 2009. "The effect of organisational change on UK public library efficiency," International Journal of Production Economics, Elsevier, vol. 121(1), pages 286-295, September.
  5. Agoraki, Maria-Eleni & Delis, Manthos D & Staikouras, Panagiotis, 2009. "The effect of board size and composition on bank efficiency," MPRA Paper 18548, University Library of Munich, Germany.
  6. Tariq, Yasir Bin & Abbas, Zaheer, 2013. "Compliance and multidimensional firm performance: Evaluating the efficacy of rule-based code of corporate governance," Economic Modelling, Elsevier, vol. 35(C), pages 565-575.

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