This paper analyses the mechanisms through which profit-sharing schemes may induce debt constrained firms to improve technical efficiency over time to guarantee positive profits. This hypothesis is first formalised in a partial equilibrium framework and then is tested on a sample of Italian traditional and cooperative firms. Technical efficiency change indexes are computed by DEA. These are regressed on a measure of finance constraints to analyse their impact on firms' efficiency growth. The results support the hypothesis that a restriction in the availability of financial resources can affect positively the growth in efficiency in firms with profit-sharing schemes
Profit sharing, technical efficiency change and finance constraints / Maietta, ORNELLA WANDA; V., Sena. - 8:(2004), pp. 149-167. [10.1016/S0885-3339(04)08007-X]
Profit sharing, technical efficiency change and finance constraints
MAIETTA, ORNELLA WANDA;
2004
Abstract
This paper analyses the mechanisms through which profit-sharing schemes may induce debt constrained firms to improve technical efficiency over time to guarantee positive profits. This hypothesis is first formalised in a partial equilibrium framework and then is tested on a sample of Italian traditional and cooperative firms. Technical efficiency change indexes are computed by DEA. These are regressed on a measure of finance constraints to analyse their impact on firms' efficiency growth. The results support the hypothesis that a restriction in the availability of financial resources can affect positively the growth in efficiency in firms with profit-sharing schemesI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.