This chapter provides an overview of the major State-invested enterprises (SIEs) operating in the European telecommunications industry; it describes their features and empirically investigates the potential differences in performance compared to private enterprises. Balance sheet and ownership data from 2006–14 are extracted from the Orbis Database. Descriptive statistics reveal that modern SIEs are not significantly different in size from private companies but have achieved a significantly higher profitability. This finding is confirmed by an econometric analysis accounting for firm- and country-level characteristics, regulatory constraints in the telecommunication industry and time fixed-effects. Regression results show that, even when controlling for the full set of covariates, SIEs display higher margins than their private counterparts. Additional relevant determinants of firms’ profitability are the probability of being listed on the stock exchange and market regulation, described by the ETCR aggregate indicator for the telecom sector.

Ownership and Firm Performance: Empirical Evidence from the European Telecommunications Industry (2006-14)

paolo castelnovo
2017-01-01

Abstract

This chapter provides an overview of the major State-invested enterprises (SIEs) operating in the European telecommunications industry; it describes their features and empirically investigates the potential differences in performance compared to private enterprises. Balance sheet and ownership data from 2006–14 are extracted from the Orbis Database. Descriptive statistics reveal that modern SIEs are not significantly different in size from private companies but have achieved a significantly higher profitability. This finding is confirmed by an econometric analysis accounting for firm- and country-level characteristics, regulatory constraints in the telecommunication industry and time fixed-effects. Regression results show that, even when controlling for the full set of covariates, SIEs display higher margins than their private counterparts. Additional relevant determinants of firms’ profitability are the probability of being listed on the stock exchange and market regulation, described by the ETCR aggregate indicator for the telecom sector.
2017
9781786439024
9781786439031
File in questo prodotto:
File Dimensione Formato  
capitolo final.pdf

non disponibili

Tipologia: Versione Editoriale (PDF)
Licenza: DRM non definito
Dimensione 271.47 kB
Formato Adobe PDF
271.47 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11383/2134408
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? 0
social impact