Stochastic Frontier Inefficiency and Firm Size for Selected Industries of the Belgian Manufacturing Sector: Some New Evidence

1988 ◽  
pp. 59-101 ◽  
Author(s):  
Julien van den Broeck
Keyword(s):  
Firm Size ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
New Evidence

scholarly journals Determinants of firm-level technical efficiency: evidence using stochastic frontier approach

2008 ◽  
Vol 5 (3) ◽  
pp. 225-239 ◽  
Author(s):  
Evis Sinani ◽  
Derek C. Jones ◽  
Niels Mygind
Keyword(s):  
Technical Efficiency ◽  
Firm Size ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Budget Constraints ◽  
Stochastic Frontiers ◽  
Firm Level ◽  
Soft Budget Constraints ◽  
Labor Quality ◽  
Enhance Efficiency

By estimating stochastic frontiers we investigate the determinants and dynamics of firm efficiency. We use a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Our main findings are that: (i) foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findings provide support for hypotheses that a firm’s ownership structure and its characteristics such as firm size, labor quality, soft budget constraints and time of privatization are important for its technical efficiency.

New Evidence on the Role of Size Effect in Determining the Pricing of Risk, Volatility Dynamics, and Economic Exposure of Firm Returns

2020 ◽  
Vol 9 (3) ◽  
pp. 1-25
Author(s):  
Faisal Khan ◽  
Sharif Ullah Jan
Keyword(s):  
Size Effect ◽  
Stock Returns ◽  
Firm Size ◽  
Research Study ◽  
Leverage Effect ◽  
Conditional Heteroskedasticity ◽  
Economic Factors ◽  
Monthly Data ◽  
New Evidence

This research study analyses the role of size effect in detecting the pricing of risk, various volatility dynamics, and economic exposure of firm returns on the Pakistani stock market by employing monthly data for the period from 1998 to 2018. Three generalized autoregressive conditional heteroskedasticity models were applied: GARCH(1,1) for capturing different volatility dynamics, GARCH-M for pricing of risk, and EGARCH for asymmetric and leverage effect. The findings of the study are as follows: Firstly, the authors untie that pricing of risk is subject to considerable variations with respect to firm size. Secondly, in the process of detecting whether the firm size matters in the case of asymmetry and leverage effect, they find that it is indeed the case. Thirdly, size effect plays a substantial role in determining various volatility dynamics. Finally, they uncover that economic factors affect stock returns differently based on firm size, signifying the role of size effect.

scholarly journals Technical Efficiency of the Malaysian Wooden Furniture Industry: A Stochastic Frontier Production Approach

2010 ◽  
Vol 3 (3) ◽  
pp. 10 ◽  
Author(s):  
Alias Radam ◽  
Mohd Rusli Yacob ◽  
Huda Farhana Mohd Muslim
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Production Model ◽  
Furniture Industry ◽  
Conventional View ◽  
Maximal Output ◽  
Wood Furniture ◽  
Wooden Furniture ◽  
Medium Firms

Wood furniture industry is an important component in our manufacturing sector for it significantly contributes to the industrialization of Malaysia’s economy. Evaluating wood furniture industry’s level of efficiency is important to assist and provide a relative direction to small and medium firms on their business. The objective of this research is to examine the efficiency of wooden furniture industry by determining the technical efficiency using stochastic frontier production model. Results show that firm output is 54 per cent less than the maximal output which can be achieved from the existing inputs. The technical inefficiency on individual firm varies from 1.63 to 94.69 per cent and so does the potential to increase firm output from the existing inputs. This evidence suggests that many firms still operate below the efficiency level, confirming the conventional view that labor-intensive firms are most likely inefficient.

scholarly journals Technical Efficiency and Technical Change in Canadian Manufacturing Industries

2014 ◽  
Vol 2014 ◽  
pp. 1-8
Author(s):  
Samuel Gamtessa
Keyword(s):  
Technical Efficiency ◽  
Technical Change ◽  
Fixed Effects ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Manufacturing Industries ◽  
Omitted Variables ◽  
Dynamic Panel ◽  
Data Set ◽  
Canadian Manufacturing

This study applies the “true fixed effects” panel stochastic frontier methodology to the Canadian KLEMS data set to estimate technical change and technical efficiency in the Canadian manufacturing sector. To account for the endogeneity of capital inputs as well as the possible problems related to omitted variables, a two-stage residual inclusion method is pursued. The first stage is estimated using the dynamic panel GMM method. The results show that Canadian manufacturing industries experienced significant declines in technical efficiencies during the last ten years. This suggests that the observed slowdown in TFP growth during the recent past is partly due to declining technical efficiency.

scholarly journals Capital Structure Evaluation Based Company Sizes And Profitability

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Aprih Santosa ◽  
Sri Yuni Widowati ◽  
Emaya Kurniawati
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Structure Evaluation ◽  
Positive Effect

The purpose of this study is to evaluate the effect of : (1) Firm Size on Profitability (ROA). (2) Firm Size on Capital Structure (DER). (3) Profitability (ROA) on Capital Structure (DER) in the Manufacturing Sector Automotive Companies and Components on the IDX. The data used are secondary data using a sample of 13 automotive sector manufacturing companies and components listed on the Indonesia Stock Exchange in 2016-2018. Sampling was done using a sensus method. This research uses a quantitative approach and the analysis technique used is multiple linear regression analysis (path analysis. The results of this study are: (1) FirmSize significantly has a positive effect on profitability (ROA). (2) Firm Size significantly has a positive effect on capital structure (DER). (3) Profitability (ROA) significantly has a positive effect on capital structure (DER).

scholarly journals Faktor–faktor yang Mempengaruhi Dividend Perusahaan Sektor Manufaktur yang Terdaftar di Bursa Efek Indonesia dan Bursa Malaysia

2020 ◽  
Vol 1 (1) ◽  
pp. 43-55
Author(s):  
Fellicia Hadi Seputro ◽  
Werner Ria Murhadi ◽  
Arif Herlambang
Keyword(s):  
Life Cycle ◽  
Firm Size ◽  
Executive Director ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Life Cycle Stage ◽  
Total Asset ◽  
Executive Directors ◽  
Dividend Payout ◽  
Independent Variables

This study aims to investigate the determinants of firms dividend payout ratio, such as life cycle stage, independent non-executive director, risk, firm size, market-to-book ratio, cash to total asset, and leverage of manufacturing sector companies listed in the Indonesia Stock Exchange and Malaysia Stock Exchange in 2014-2018. This study uses the quantitative approach and multiple linear regression to analyze the data. The object of this research are 295 year observations in Indonesia Stock Exchange and 600 year observations in Malaysia Stock Exchange. The Independent variables used in this study are life cycle stage and independent non-executive directors. While the control variables are risk, firm size, market-to-book ratio, cash to total asset and leverage. The study finds that in manufacturing sector companies listed in the Indonesia Stock Exchange, life cycle stage, independent non-executive director, firm size and market-to-book ratio affect dividend payout ratio positively. On the other hand, leverage affect dividend payout ratio negatively. While risk and cash to total asset has no significant effect on dividend payout ratio. Meanwhile in manufacturing sector companies listed in the Malaysia Stock Exchange, the study finds that life cycle stage, independent non-executive director, firm size, market-to-book ratio and cash to asset affect dividend payout ratio positively. While risk and leverage affect dividend payout ratio negatively.      Keywords: dividend policy, life cycle stage, independent non-executive director

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