Dynamic Firm Performance Research Articles

Dynamic firm performance and estimator choice: A comparison of dynamic panel data estimators

Dynamic panel data models are increasingly and extensively used in operational research and performance analysis as researchers seek to better understand the dynamic behaviors of firms. However, estimation of the lagged dependent variable in conjunction with the time-invariant individual effect leads to a number of econometric issues. While several methodologies exist to overcome such complexities, there is little consensus on the appropriate method of estimation. In this paper, we evaluate the performance of different dynamic panel estimators across a range of common settings experienced by researchers. Instead of focusing on one single criterion of assessment, we employ multiple evaluative metrics across multiple experiments to provide a more extensive analysis of dynamic panel estimators. Taking all simulations into account, we find the quasi-maximum likelihood estimator to be the most robust and reliable estimator across empirical settings. We illustrate our findings with two empirical applications and show that the choice of estimator significantly affects the interpretation of firms’ productivity and efficiency persistence.

Social Networks and Dynamic Firm Performance: Evidence from the Taiwanese Semiconductor Industry

Redes sociales y rendimiento dinámico de la empresa: Evidencia de la industria de semiconductores de Taiwán. Este estudio examina la relación entre la interconexión del consejo directivo y el rendimiento de la empresa. Utilizando datos de la industria de semiconductores de Taiwán de 2013 a 2015, este estudio utiliza la centralidad, los agujeros de la estructura y el número de interconexiones entre consejos directivos como proxies de la interconexión de los consejos directivos. Este estudio también evalúa el rendimiento de la empresa a largo plazo mediante un modelo de análisis envolvente de datos dinámicos. donde se concluye que la interconexión de los directivos mejora la eficiencia dinámica. Utilizando un análisis de la red social de los directivos, también identificamos las cinco mejores empresas con mejor interconexión del consejo directivo en términos de centralidad, agujeros estructurales, y el número de directores interconectados. En general, este trabajo es novedoso en la vinculación de la interconexión de los directivos con la eficiencia dinámica. El estudio enriquece la literatura contable existente sobre el papel de los directivos para influir en el rendimiento de la empresa y evaluar éste desde una perspectiva de eficiencia multidimensional. This study examines the relationship between board interlock and firm performance. Using the Taiwanese semiconductor industry’s dataset from 2013 to 2015, this study uses centrality, structure holes, and the number of interlocking boards as proxies of board interlock. This study also evaluates firm performance over a long-term period through a dynamic data envelopment analysis model. which concluded that board interlock improves dynamic efficiency. Using a directors’ social network analysis, we also identified the top five companies with the best board interlock in terms of centrality, structural holes, and the number of interlocking directors. Overall, this paper is novel in linking board interlock to dynamic efficiency. The study enriches the extant accounting literature regarding the role of directors in influencing firm performance and evaluate firm performance from a multidimensional efficiency perspective.

Accumulation of R&D Capital and Dynamic Firm Performance: A Not-so-Fixed Effect Model

Accumulation of R&D Capital and Dynamic Firm Performance: A Not-so-Fixed Effect Model