A firm specific analysis of economies of size in the U.S. urban multiservice transit industry

Colburn, Christopher B.; Talley, Wayne K.

doi:10.1016/0191-2615(92)90024-q

Cited by 19 publications

(7 citation statements)

References 19 publications

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“…Large firms are therefore able to spread costs over the large production realized (Stefanou, 2006;Gomes, Kruglianskas, & Scherer, 2009;Gay, 1981;Colburn & Talley, 1992;Panzar & Willig, 1981;Cohen, 1995;Colburn & Talley, 1992;Ross, 2000;Sah & Stiglitz, 1988;Panzar & Willig, 1981) Therefore, the economies of scale theory explain the cost advantages that enterprises obtain due to size, output or scale of operation.…”

Section: Theoretical Reviewmentioning

confidence: 99%

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

Odalo¹,

Achoki²,

Njuguna³

2016

IJEF

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Company/firm size is among the many variables that is significant in assessing the profitability of a company. Therefore, this paper seeks to evaluate the effect of company size on the financial performance of listed agricultural companies in Kenya. The theory of economies of scale that links benefits arising from company size, cost management and production volumes was utilized. Secondary data was extracted from the annual reports comprising of financial statement from the period 2003 to 2013 and analyzed using a pooled OLS model. Company size was measured using the total assets (Log of assets) while financial performance was measured by return on assets (ROA), return on equity (ROE) and earnings per share (EPS). The regression results present the goodness of fit for the regression between log total asset and ROA, ROE and EPS as 0.112, 0.113 and 0.074 respectively. The overall model of ROA, ROE and EPS was significant with F statistic of 9.334, 11.096 and 5.901 respectively. The relationship between log total asset and financial performance measures was positive and significant for ROA (b1= 0.033, p value, 0.003) and ROE (b1= 0.049, p value, 0.001) and. EPS (b1= 3.866, p value, 0.018). These results indicate that company size as measured by total assets affects financial performance of agricultural companies listed in NSE positively and significantly. Company size had positive and statistical significance on all the three indicators of the financial performance disclosing that large companies were found to have a competitive advantage over small firms.

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Section: Theoretical Reviewmentioning

confidence: 99%

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

Odalo¹,

Achoki²,

Njuguna³

2016

IJEF

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“…A strand of relevant literature has been accumulated. For example, in the case of local public transport, the long-term costs of urban transit companies in the US during the period from the late 1970s through the 1980s were investigated [7][8][9]. There were potential economies of scope, dependent on the post-consolidation wage level [7], whereas it was found that there was potential for cost complementarity depending on the combination of transit modes [9].…”

Section: Introductionmentioning

confidence: 99%

Economies of Scope and Local Government Expenditure: Evidence from Creation of Specially Authorized Cities in Japan

Miyazaki¹

2021

Sustainability

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There is little evidence of either the existence or absence of economies of scope in public services provided by general-purpose local governments. This study uses difference-in-differences (DID) analysis and the event study method to estimate the impact on expenditure of the designation of cities as either core cities or special case cities, thereby giving them the authority to undertake a wider range of activities, and identify the magnitude of the economies of scope in local governments using panel data for Japanese municipalities during the period 1996–2015. The findings of this research are summarized as follows. First, in the provision of public services by general-local governments, economies of scope do not occur in the short term (2–3 years), but do appear in the mid to long term (more than 5 years for core city status). After the delegation of duties, per capita expenditure for core cities increases by 2.8% immediately after the designation, but then decreases by 0.6% annually. Second, the wider the range of extra activities delegated, the greater the economies of scope.

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“…There are only a few studies that estimated a multi-output cost function. The most relevant ones in this category are Viton (1992), Viton (1993) and Colburn and Talley (1992), both of which analyzed the long run cost structure of urban multi-mode transit system in the U.S. Viton (1992) To measure the efficiency level of the multi-outputs Swiss and German urban transit companies we apply a parametric frontier input distance function. 8 We therefore focus on the technical inefficiency as opposed to possible inefficiencies due to suboptimal allocation of input factors.…”

Section: Model Specificationmentioning

confidence: 99%

Unobserved Heterogeneity and International Benchmarking in Public Transport

2009

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We analyze the technical efficiency of German and Swiss urban public transport companies by means of SFA. In transport networks we might face different network structures or complexities, not observed, but influencing the production process. The unobserved factors are typically modeled as separable factors. However, we argue that the entire production process is organized around different network structures. Therefore, they are inevitably non-separable from the observed inputs and outputs. The adopted econometric model is a random coefficient stochastic frontier model. We estimate an input distance function for the years 1991 to 2006. The results underline the presence of unobserved non-separable factors.3

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A firm specific analysis of economies of size in the U.S. urban multiservice transit industry

Cited by 19 publications

References 19 publications

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

Economies of Scope and Local Government Expenditure: Evidence from Creation of Specially Authorized Cities in Japan

Unobserved Heterogeneity and International Benchmarking in Public Transport

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