Profit sharing, technical efficiency change and finance constraints

Ornella W. Maietta, Vania Sena

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

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 schemes.
Original languageEnglish
Title of host publicationEmployee participation, firm performance and survival
EditorsVirginie Perotin, Andrew Robinson
PublisherEmerald
Pages149-167
Number of pages19
ISBN (Electronic)978-1-84950-277-1
ISBN (Print)978-0-76231-114-9
DOIs
Publication statusPublished - 2004

Publication series

NameAdvances in the economic analysis of Pparticipatory & labor-managed firms
PublisherEmerald
Volume8
ISSN (Print)0885-3339

Fingerprint

Technical efficiency
Finance
Efficiency change
Profit sharing
Guarantee
Financial resources
Debt
Firm efficiency
Profit
Partial equilibrium

Keywords

  • profit-sharing schemes
  • debt constrained firms
  • technical efficiency
  • positive profits
  • partial equilibrium framework
  • Italian
  • traditional firms
  • cooperative firms
  • efficiency growth

Cite this

Maietta, O. W., & Sena, V. (2004). Profit sharing, technical efficiency change and finance constraints. In V. Perotin, & A. Robinson (Eds.), Employee participation, firm performance and survival (pp. 149-167). (Advances in the economic analysis of Pparticipatory & labor-managed firms; Vol. 8). Emerald. https://doi.org/10.1016/S0885-3339(04)08007-X
Maietta, Ornella W. ; Sena, Vania. / Profit sharing, technical efficiency change and finance constraints. Employee participation, firm performance and survival. editor / Virginie Perotin ; Andrew Robinson. Emerald, 2004. pp. 149-167 (Advances in the economic analysis of Pparticipatory & labor-managed firms).
@inbook{7a5de43eaf3940a095439793b9cfb62c,
title = "Profit sharing, technical efficiency change and finance constraints",
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 schemes.",
keywords = "profit-sharing schemes, debt constrained firms, technical efficiency, positive profits, partial equilibrium framework, Italian, traditional firms, cooperative firms, efficiency growth",
author = "Maietta, {Ornella W.} and Vania Sena",
year = "2004",
doi = "10.1016/S0885-3339(04)08007-X",
language = "English",
isbn = "978-0-76231-114-9",
series = "Advances in the economic analysis of Pparticipatory & labor-managed firms",
publisher = "Emerald",
pages = "149--167",
editor = "Virginie Perotin and Andrew Robinson",
booktitle = "Employee participation, firm performance and survival",

}

Maietta, OW & Sena, V 2004, Profit sharing, technical efficiency change and finance constraints. in V Perotin & A Robinson (eds), Employee participation, firm performance and survival. Advances in the economic analysis of Pparticipatory & labor-managed firms, vol. 8, Emerald, pp. 149-167. https://doi.org/10.1016/S0885-3339(04)08007-X

Profit sharing, technical efficiency change and finance constraints. / Maietta, Ornella W.; Sena, Vania.

Employee participation, firm performance and survival. ed. / Virginie Perotin; Andrew Robinson. Emerald, 2004. p. 149-167 (Advances in the economic analysis of Pparticipatory & labor-managed firms; Vol. 8).

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

TY - CHAP

T1 - Profit sharing, technical efficiency change and finance constraints

AU - Maietta, Ornella W.

AU - Sena, Vania

PY - 2004

Y1 - 2004

N2 - 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.

AB - 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.

KW - profit-sharing schemes

KW - debt constrained firms

KW - technical efficiency

KW - positive profits

KW - partial equilibrium framework

KW - Italian

KW - traditional firms

KW - cooperative firms

KW - efficiency growth

UR - http://www.emeraldinsight.com/books.htm?chapterid=1783153&show=abstract

U2 - 10.1016/S0885-3339(04)08007-X

DO - 10.1016/S0885-3339(04)08007-X

M3 - Chapter (peer-reviewed)

SN - 978-0-76231-114-9

T3 - Advances in the economic analysis of Pparticipatory & labor-managed firms

SP - 149

EP - 167

BT - Employee participation, firm performance and survival

A2 - Perotin, Virginie

A2 - Robinson, Andrew

PB - Emerald

ER -

Maietta OW, Sena V. Profit sharing, technical efficiency change and finance constraints. In Perotin V, Robinson A, editors, Employee participation, firm performance and survival. Emerald. 2004. p. 149-167. (Advances in the economic analysis of Pparticipatory & labor-managed firms). https://doi.org/10.1016/S0885-3339(04)08007-X