2010
DOI: 10.1007/s11846-010-0044-3
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The effect of public involvement on firm inefficiency: evidence using Japanese private firms

Abstract: The purpose of this paper is to investigate the effect of public involvement on firm inefficiency. Public involvement is defined as the actions taken by governments to control firm management, as expressed in regulation and public ownership. We make the following three contributions. First, we show public involvement is an important determinant of the inefficiency of private firms. Although public involvement has been shown to influence firm behavior in public or regulated sectors, existing studies in the priv… Show more

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Cited by 6 publications
(11 citation statements)
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References 81 publications
(157 reference statements)
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“…For them, this has become an ongoing debate on theoretical and empirical corporate finance studies, and a variety of academic made an effort in this field (Ahmadi, Nakaa, & Bouri, 2018;Paniagua, Rivelles, & Sapena, 2018;Sánchez-Ballesta & García-Meca, 2007;Shailer & Wang, 2015;Vu, Phan, & Le, 2018). Nakamura (2010) mentions to two approaches in measuring performance, including profitability measures such as return on asset, return on equity, and cost inefficiency measures. Apart from these researches, our paper employs the efficiency scores calculated by DEA method to reexamine relationship between ownership structure and decomposing financial performance.…”
Section: Introductionmentioning
confidence: 99%
“…For them, this has become an ongoing debate on theoretical and empirical corporate finance studies, and a variety of academic made an effort in this field (Ahmadi, Nakaa, & Bouri, 2018;Paniagua, Rivelles, & Sapena, 2018;Sánchez-Ballesta & García-Meca, 2007;Shailer & Wang, 2015;Vu, Phan, & Le, 2018). Nakamura (2010) mentions to two approaches in measuring performance, including profitability measures such as return on asset, return on equity, and cost inefficiency measures. Apart from these researches, our paper employs the efficiency scores calculated by DEA method to reexamine relationship between ownership structure and decomposing financial performance.…”
Section: Introductionmentioning
confidence: 99%
“…According to Berger et al (2005), since the goals of the government and the firm are different, agency problems occur and thus inefficiency increases. Similarly, Nakamura (2010) shows that, as public ownership brings direct government involvement in a firm's management, it is not unusual for a firm to be steered in a direction desirable for the government.…”
Section: Results Of Stochastic Frontier Modelmentioning
confidence: 99%
“…Previous studies such as Nakamura (2010) show that holding shares of the firms works as an incentive for top management to improve efficiency. However, our result suggests that this is not the case for public utilities.…”
Section: Results Of Stochastic Frontier Modelmentioning
confidence: 99%
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