An analysis of innovation in textile companies: An efficiency approach

The elimination of trade contingency measures in 2005 triggered a process of renewal in the textile sector, requiring major investments. The divide between efficiency and innovation has become an issue of major importance for decision-making in the Spanish textile sector. This study provides quantitative data on the efficiency levels of innovative Spanish textile companies. The aim is to identify their distinguishing features and establish a possible pattern to follow. In addition, truncated regression is used to estimate the determinants of efficiency, in order to check the significance of innovation processes for firms.     

Methods of privatization and economic growth in transition economies1

We examine how different methods of privatization might have affected growth in transition economies. Using several econometric specifications, including fixed effects and GMM, we estimate a cross‐country panel growth model for 1990–2003. We find only voucher privatization to have been significantly associated with faster growth. Moreover, neither private sector development per se nor capital market development exercised a significant influence. We speculate that voucher privatization may have been effective because of the speed with which links between firms and the state were severed.     

Ownership structure and investment finance in transition economiesA survey of evidence from large firms in Hungary and Poland1

Using survey data on 157 large private Hungarian and Polish companies this paper investigates links between ownership structures and CEOs’ expectations with regard to sources of finance for investment. The Bayesian estimation is used to deal with the small sample restrictions, while classical methods provide robustness checks. We found a hump‐shaped relationship between ownership concentration and expectations of relying on public equity. The latter is most likely for firms where the largest investor owns between 25 percent and 49 percent of shares, just below the legal control threshold. More profitable firms rely on retained earnings for their investment finance, consistent with the ‘pecking order’ theory of financing. Finally, firms for which the largest shareholder is a domestic institutional investor are more likely to borrow from domestic banks.