Ownership Structure and Firm Performance in the Egyptian Manufacturing Sector
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In: Economics Bulletin, Vol. 35, No. 4, 2015, p. 2197-2212.
Research output: Journal contributions › Journal articles › Research › peer-review
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RIS
TY - JOUR
T1 - Ownership Structure and Firm Performance in the Egyptian Manufacturing Sector
AU - Abdelgouad, Ahmed Fayez
AU - Pfeifer, Christian
AU - Weche Gelübcke, John Philipp
N1 - Publisher Copyright: © 2015. All Rights Reserved.
PY - 2015
Y1 - 2015
N2 - We use the World Bank enterprise survey for the Egyptian manufacturing sector to study the correlation between the ownership structure (private vs. public, Egyptian vs. Arab foreign vs. non-Arab foreign) and firm performance, which we measure as sales per worker, capacity utilization, and net profit rate. Our main findings indicate that (1) productivity differences between Egyptian private and public firms are not significant, but firms with public ownership have a lower capacity utilization and a lower net profit rate than private firms, (2) firms with private Arab and private non-Arab foreign ownership are significantly more productive and have a higher capacity utilization than purely Egyptian owned firms, and (3) differences between Arab and non-Arab foreign ownership are not significant for productivity and capacity utilization, but firms with non-Arab foreign ownership have a higher net profit rate than firms with Arab foreign or Egyptian owners.
AB - We use the World Bank enterprise survey for the Egyptian manufacturing sector to study the correlation between the ownership structure (private vs. public, Egyptian vs. Arab foreign vs. non-Arab foreign) and firm performance, which we measure as sales per worker, capacity utilization, and net profit rate. Our main findings indicate that (1) productivity differences between Egyptian private and public firms are not significant, but firms with public ownership have a lower capacity utilization and a lower net profit rate than private firms, (2) firms with private Arab and private non-Arab foreign ownership are significantly more productive and have a higher capacity utilization than purely Egyptian owned firms, and (3) differences between Arab and non-Arab foreign ownership are not significant for productivity and capacity utilization, but firms with non-Arab foreign ownership have a higher net profit rate than firms with Arab foreign or Egyptian owners.
KW - Economics, empirical/statistics
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=84991685830&partnerID=8YFLogxK
M3 - Journal articles
VL - 35
SP - 2197
EP - 2212
JO - Economics Bulletin
JF - Economics Bulletin
SN - 1545-2921
IS - 4
ER -