Patterns of corporate governance and technical efficiency in Italian manufacturing |
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| Authors: | Sergio Destefanis Vania Sena |
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| Affiliation: | 1. CELPE and CSEF, University of Salerno, Italy;2. Aston Business School, Aston University, UKAston Business School, Aston University, Aston Triangle, B4 7EF, Birmingham, UK |
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| Abstract: | The purpose of this paper is to analyse the relationship between the corporate governance system and technical efficiency in Italian manufacturing. We use a non‐parametric frontier technique (DEA) to derive technical efficiency measures for a sample of Italian firms taken from nine manufacturing industries. These measures are then related to the characteristics of the corporate governance system. Two of these characteristics turn out to have a positive impact on technical efficiency: the percentage of the company shares owned by the largest shareholder and the fact that a firm belongs to a pyramidal group. Interestingly, a trade‐off emerges between these influences, in the sense that one is stronger in industries where the other is weaker. Copyright © 2007 John Wiley & Sons, Ltd. |
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