Ownership and Cost Efficiency in Taiwan''s Manufacturing Industry

• Main Authors: Wei Yeh Chen, 程暐燁
• Other Authors: Jin Li Hu
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/51569519895604864520

碩士 === 淡江大學 === 產業經濟學系 === 89 === There have been waves of privatization all over the world during the past three decades. One of the main objectives of privatization is to improve the efficiency of public enterprises. In the 1980s, Taiwan government also started privatizing of public enterprises and transferred ownership to the private sector. This thesis studies 120 public, mixed, and private firms in Taiwan during the period of 1996-1997. Methods of Stochastic Frontiers and Data Envelopment Analysis (DEA) are applied and compared. For stochastic frontiers, we use the Frontier 4.1 software to estimate the corresponding cost frontiers and cost inefficiencies. For data envelopment analysis, this study then applies DEAP 2.1 software. These results are used to estimate impacts of the government’s stock share on firms’ inefficiencies. Our empirical findings show that a firm’s cost inefficiency is a quadratic function of the stock share of the government. A firm’s cost inefficiency reaches its maximum around 50% of the government’s stock share because of severe owner conflict.