IDEAS home Printed from https://ideas.repec.org/a/taf/defpea/v33y2022i2p201-218.html
   My bibliography  Save this article

Firm Performance in Regulated Markets: The Case of Spanish Defence Industry

Author

Listed:
  • Francisco J. Callado-Muñoz
  • Jana Hromcová
  • Marcos Sanso-Navarro
  • Natalia Utrero-González
  • María Vera-Cabello

Abstract

This paper studies the effects of legal reforms associated with defence and public procurement on firm performance. With this aim, a theoretical framework for the reaction of defence firms to regulatory changes is developed. Its predictions have been empirically assessed using the last reforms implemented in Spain. Our results suggest that these new regulations have allowed the main defence contractors to outperform the other defence contractors in terms of productivity, having no effect on profitability. These findings are in line with theoretical priors. Therefore, it can be claimed that governmental interventions have had an effect on firm performance. We also provide evidence that, while the procurement procedures and the contract law put into place in 2011 have principally affected the productivity of large firms, the centralization process established in 2014 has exerted a higher influence on SMEs.

Suggested Citation

  • Francisco J. Callado-Muñoz & Jana Hromcová & Marcos Sanso-Navarro & Natalia Utrero-González & María Vera-Cabello, 2022. "Firm Performance in Regulated Markets: The Case of Spanish Defence Industry," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(2), pages 201-218, February.
    • Handle: RePEc:taf:defpea:v:33:y:2022:i:2:p:201-218
    DOI: 10.1080/10242694.2020.1783622
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10242694.2020.1783622
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10242694.2020.1783622?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:defpea:v:33:y:2022:i:2:p:201-218. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GDPE20 .

    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.