Ownership, diversification and cost advantages: evidence from the Italian leasing industry

Degl'Innocenti, Marta and Girardone, Claudia (2012) Ownership, diversification and cost advantages: evidence from the Italian leasing industry. Journal of International Financial Markets Institutions and Money, 22, (4), 879-896. (doi:10.1016/j.intfin.2012.05.002).


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Using Greene's (2005) random parameter cost frontier model and a unique hand-collected dataset, this paper provides novel evidence on the cost advantages of Italian leasing companies over 2002–2008, focusing on ownership structures and diversification strategies. Results suggest that cost efficiency and economies of scale have decreased significantly over the period analyzed. Bank-related, independent and domestic leasing companies are more able to control costs than their captive and foreign counterparts. Diversification strategies can be crucial in determining the cost effectiveness of leasing firms. Nonetheless, smaller, independent and less diversified leasing firms appear to benefit from higher economies of scale and greater technological advancements

Item Type: Article
Digital Object Identifier (DOI): doi:10.1016/j.intfin.2012.05.002
ISSNs: 1042-4431 (print)
Keywords: efficiency, leasing industry, random parameter frontier model, diversification strategies, ownership structures
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions : Faculty of Business and Law > Southampton Business School > Centre for Digital, Interactive & Data Driven Marketing
ePrint ID: 343131
Accepted Date and Publication Date:
October 2012Published
May 2012Made publicly available
Date Deposited: 24 Sep 2012 15:50
Last Modified: 31 Mar 2016 14:34
URI: http://eprints.soton.ac.uk/id/eprint/343131

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