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Does the legal form matter for firm performance in the MENA region?

Author

Listed:
  • Issam Abdo Ahmad
  • Ali Fakih
Abstract
This paper attempts to examine the relationship between firm legal form and firm performance in the Middle East and North Africa (MENA) region using the World Bank Enterprise Survey (WBES) database. As per our analysis, it was determined that open shareholding, closed shareholding, partnership, and limited partnership companies have an advantage in terms of annual sales and annual productivity growth rates over sole proprietorship firms and that medium‐sized and large‐sized firms also demonstrate an advantage over small ones. Furthermore, our analysis shows that foreign ownership, exporting activities, the usage of the web in communication with clients and suppliers, and the presence of full‐time workers have positively affected firm performance. These findings are deemed robust when running the analysis for firms with female participation in ownership. This paper provides directions for strategists targeting at improving the performance of firms.

Suggested Citation

  • Issam Abdo Ahmad & Ali Fakih, 2022. "Does the legal form matter for firm performance in the MENA region?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 205-227, March.
    • Handle: RePEc:bla:annpce:v:93:y:2022:i:1:p:205-227
    DOI: 10.1111/apce.12324
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    References listed on IDEAS

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    Cited by:

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    2. Hunjra, Ahmed Imran & Azam, Muhammad & Bruna, Maria Giuseppina & Bouri, Elie, 2023. "A cross-regional investigation of institutional quality and sustainable development," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    3. Mahmoud Arayssi & Ali Fakih & Nathir Haimoun, 2023. "Skill Mismatch, Nepotism, Job Satisfaction, and Young Females in the MENA Region," Econometrics, MDPI, vol. 11(2), pages 1-20, June.
    4. Al-Fayoumi, Nedal & Bouri, Elie & Abuzayed, Bana, 2023. "Decomposed oil price shocks and GCC stock market sector returns and volatility," Energy Economics, Elsevier, vol. 126(C).
    5. Abdo Ahmad, Issam & Fakih, Ali & Hammoud, Mohammad, 2023. "Parents' perceptions of their children's mental health during COVID-19: Evidence from Canada," Social Science & Medicine, Elsevier, vol. 337(C).
    6. Zahraa Barakat & Ali Fakih, 2021. "Determinants of the Arab Spring Protests in Tunisia, Egypt, and Libya: What Have We Learned?," Social Sciences, MDPI, vol. 10(8), pages 1-15, July.

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    More about this item

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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