Efficiency Analysis of Eu and Non-Eu R&d Investor Firms on Matched Samples

Abstract

This study is on the efficiency analysis of EU and non-EU R&D investor firms. The study mainly aims to understand if there is a difference between the efficiency level of EU and non-EU R&D investor firms and what the effecting factors of firm efficiency are. To construct an unbiased group of EU and non-EU firms, propensity score matching (PSM) is employed and thereby the analysis is made with the firms that have similar features. In the efficiency analysis stage, a slacks-based measure data envelopment analysis (SBM DEA) model is used for 2017-2019 period. After that, a panel Tobit regression model is used to examine the factors effecting the efficiency of the EU and non-EU firms. The results showed that EU firms have higher efficiency than non-EU firms only in 2018 and EU firms have very high improvement potential in market capitalization. By panel Tobit regression model, it was understood that capital expenditure intensity has negative effect on both the efficiency of EU and non-EU firms. Size of the firms has negative effect on only non-EU firms.