The differentiation of economic efficiency within employee-owned companies

Authors

DOI:

https://doi.org/10.26485/SPE/2020/114/17

Keywords:

ownership transformations, direct privatisation, giving a state-owned enterprise for use against payment, sales revenue, ownership concentration

Abstract

Background: The empirical research on the differentiation of economic efficiency within em­ployee-owned companies as measured in terms of sales revenue while minimizing the degree of ownership concentration thematically applies toward evaluating the effectiveness of the direct privatisation method implemented by giving a state-owned enterprise for use against payment.

Research purpose: The main goal of this article is to empirically verify the research hypothesis, stating that the degree of ownership concentration significantly differentiates the economic effi­ciency of employee-owned companies in terms of sales revenue.

Methods: The empirical verification of this hypothesis was carried out using the method of Data Envelopment Analysis (DEA), which measures the relative technical efficiency of a given deci­sion-making unit (DMU). Empirical studies were conducted on a group of 13 employee-owned companies from the Mazowieckie Province, which concluded agreements with the State Treasury between the years 2000–2005 and covered a 10-year research period. The analysis of sales reve­nue and the degree of ownership concentration was made on the basis of hand-collected data from documents submitted by surveyed employee-owned companies in the National Court Register in the years between 2002–2017.

Conclusions: Presented results of the empirical research do not allow for full confirmation of the research hypothesis because employee-owned companies, in which DEA efficiency measures were lower than the average measure for all surveyed companies were characterized by the differ­ent average annual degree of ownership concentration.

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Published

2020-06-01

How to Cite

Matuszewska-Pierzynka, A. (2020). The differentiation of economic efficiency within employee-owned companies. Studia Prawno-Ekonomiczne, 114, 313–332. https://doi.org/10.26485/SPE/2020/114/17

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ARTICLES - THE ECONOMICS