Corporate Governance and Firm's Efficiency: The Case of a Transitional Country, Ukraine

Journal of Productivity Analysis, Vol. 25, No. 1, pp. 143-157, 2006

UCL Discussion Paper No. 0429

24 Pages Posted: 3 Mar 2006

See all articles by Valentin Zelenyuk

Valentin Zelenyuk

Catholic University of Louvain

Vitaliy Zheka

Lviv Academy of Commerce

Abstract

In this study, we look for empirical support for the hypothesis that there is a positive relationship between the levels of corporate governance quality across firms and the relative efficiency levels of these firms. This hypothesis is related to Liebenstein's idea of X-efficiency. We use the data envelopment analysis (DEA)estimator to obtain proxies for X-[in]efficiency of firms in our sample and then analyze them with respect to different ownership structures by comparing distributions and aggregate efficiencies across different groups. We also use truncated regression with bootstrap, following Simar and Wilson (2003), to infer on relationship of inefficiency to various indicators of quality of corporate governance, ownership variables, as well as industry and year specific dummies. The data is coming from 7 industries in Ukraine.

Keywords: corporate governance, ownership structure, data envelopment analysis, Liebenstein, X-efficiency, efficiency, Ukraine

JEL Classification: G32, G34, C24, D24, G30, P27

Suggested Citation

Zelenyuk, Valentin and Zheka, Vitaliy V., Corporate Governance and Firm's Efficiency: The Case of a Transitional Country, Ukraine. Journal of Productivity Analysis, Vol. 25, No. 1, pp. 143-157, 2006, UCL Discussion Paper No. 0429, Available at SSRN: https://ssrn.com/abstract=886105

Valentin Zelenyuk (Contact Author)

Catholic University of Louvain ( email )

Place Montesquieu, 3
B-1348 Louvain-la-Neuve, 1348
Belgium

Vitaliy V. Zheka

Lviv Academy of Commerce ( email )

vul. Brativ Tershakivtciv, 2a k. 318
Lviv, 79005
Ukraine

HOME PAGE: http://www.lac.lviv.ua

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