Regulatory environment and firm performance in EU telecommunications services
We empirically estimate the effects of regulated access prices and firms’ multinational status on firm performance by using firm, corporate group, and country level information for the European broadband market between 2002 and 2010. Three measures of firm performance are used, namely: market share, turnover and productivity. Special attention is paid to differences in the impact on the performance measures depending on a firm’s position as either a market incumbent or entrant. We find that while access prices have a negative effect on entrants’ market share and turnover, the effect on incumbents’ market share, turnover and productivity is positive. Further, we find that multinational entrants perform better than national entrants in terms of their market share but worse in terms of their turnover and productivity. The opposite is true of incumbent multinationals which perform better than nationals in terms of their turnover and productivity but worse in terms of their market share. This confirms that a firm’s multinational status has a significant impact on its performance, and that this impact differs for incumbents and entrants. Finally, when evaluating the impact of access prices on firm performance at the mean performance of national and multinational firms, we find that the impact of access prices is lower for multinational than for national firms.
|Date of creation:||2014|
|Date of revision:|
|Contact details of provider:|| Postal: Carrer del Tinent Coronel Valenzuela 1-11, 08034 Barcelona|
Phone: 93 403 46 46
Fax: 93 403 98 32
Web page: http://www.ieb.ub.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- MB Sarkar & S Tamer Cavusgil & Preet S Aulakh, 1999. "International Expansion of Telecommunication Carriers: The Influence of Market Structure, Network Characteristics, and Entry Imperfections," Journal of International Business Studies, Palgrave Macmillan, vol. 30(2), pages 361-381, June.
- David J. Denis & Diane K. Denis & Keven Yost, 2002. "Global Diversification, Industrial Diversification, and Firm Value," Journal of Finance, American Finance Association, vol. 57(5), pages 1951-1979, October.
- MichaÅ‚ Grajek & Lars-Hendrik RÃ¶ller, 2009.
"Regulation and Investment in Network Industries: Evidence from European Telecoms,"
SFB 649 Discussion Papers
SFB649DP2009-039, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Michał Grajek & Lars-Hendrik Röller, 2012. "Regulation and Investment in Network Industries: Evidence from European Telecoms," Journal of Law and Economics, University of Chicago Press, vol. 55(1), pages 189 - 216.
- Michal Grajek & Lars-Hendrik Röller, 2009. "Regulation and investment in network industries: Evidence from European telecoms," ESMT Research Working Papers ESMT-09-004, ESMT European School of Management and Technology.
- Gerpott, Torsten J. & Jakopin, Nejc M., 2005. "The degree of internationalization and the financial performance of European mobile network operators," Telecommunications Policy, Elsevier, vol. 29(8), pages 635-661, September.
- Mattia Nardotto & Tommaso Valletti & Frank Verboven, 2015.
"Unbundling The Incumbent: Evidence From Uk Broadband,"
Journal of the European Economic Association,
European Economic Association, vol. 13(2), pages 330-362, 04.
- Mattia Nardotto & Tommaso Valletti & Frank Verboven, 2014. "Unbundling the Incumbent: Evidence from UK broadband," CEIS Research Paper 331, Tor Vergata University, CEIS, revised 03 Oct 2014.
- Nardotto, Mattia & Valletti, Tommaso & Verboven, Frank, 2012. "Unbundling the incumbent: Evidence from UK broadband," CEPR Discussion Papers 9194, C.E.P.R. Discussion Papers.
- Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002.
"Unit root tests in panel data: asymptotic and finite-sample properties,"
Journal of Econometrics,
Elsevier, vol. 108(1), pages 1-24, May.
- Tom Doan, . "LEVINLIN: RATS procedure to perform Levin-Lin-Chu test for unit roots in panel data," Statistical Software Components RTS00242, Boston College Department of Economics.
- Mark Armstrong & David E.M. Sappington, 2006.
"Regulation, Competition and Liberalization,"
Journal of Economic Literature,
American Economic Association, vol. 44(2), pages 325-366, June.
- Carlo Cambini & Laura Rondi, 2012. "Capital structure and investment in regulated network utilities: evidence from EU telecoms," Industrial and Corporate Change, Oxford University Press, vol. 21(1), pages 31-71, February.
- de Bijl, P.W.J. & Peitz, M., 2005.
"Local Loop Unbundling in Europe : Experience, Prospects and Policy Challenges,"
2005-008, Tilburg University, Tilburg Law and Economic Center.
- de Bijl, Paul W.J. & Peitz, Martin, 2005. "Local Loop Unbundling in Europe: Experience, Prospects and Policy Challenges," MPRA Paper 2441, University Library of Munich, Germany.
- de Bijl, Paul W.J. & Peitz, Martin, 2005. "Local Loop Unbundling in Europe: Experience, Prospects and Policy Challenges," MPRA Paper 2511, University Library of Munich, Germany.
- Koutroumpis, Pantelis, 2009. "The economic impact of broadband on growth: A simultaneous approach," Telecommunications Policy, Elsevier, vol. 33(9), pages 471-485, October.
- Gerpott, Torsten J. & Jakopin, Nejc M., 2007. "Firm and target country characteristics as factors explaining wealth creation from international expansion moves of mobile network operators," Telecommunications Policy, Elsevier, vol. 31(2), pages 72-92, March.
- Keiichi Hori & Keizo Mizuno, 2009. "Competition schemes and investment in network infrastructure under uncertainty," Journal of Regulatory Economics, Springer, vol. 35(2), pages 179-200, April.
- Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan, vol. 40(9), pages 1411-1431, December.
- Valletti, Tommaso M., 0. "The theory of access pricing and its linkage with investment incentives," Telecommunications Policy, Elsevier, vol. 27(10-11), pages 659-675, November.
- Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March.
- Lenn Gomes & Kannan Ramaswamy, 1999. "An Empirical Examination of the Form of the Relationship Between Multinationality and Performance," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 173-187, March.
- David Sappington, 2006. "Regulation in Vertically-Related Industries: Myths, Facts, and Policy," Review of Industrial Organization, Springer, vol. 28(1), pages 3-16, 02.
- Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
- Jakopin, Nejc M., 2008. "Internationalisation in the telecommunications services industry: Literature review and research agenda," Telecommunications Policy, Elsevier, vol. 32(8), pages 531-544, September.
When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:2013/6/doc2014-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.