Transaction costs, productive efficiency and financial account management

摘要

Purpose - This study investigates functional equivalence between entering money into transactionrncosts that appears in firms' cost functions and the money in the production function. In light of thisrnmodel, the purpose of the study is to show the impact of financial account management in general onrnproductive efficiency.rnDesign/methodology/approach - A stochastic production frontier approach is applied to estimaternproduction and technical efficiency model jointly to analyse the effect of alternative financialrninstruments on the productive efficiency of 12 EU countries.rnFindings - The results suggest that the growth performance of these countries is partly explained byrnthe changes in productive efficiency, and that the efficiency is not independent of financial accountrnmanagement.rnOriginality/value - The contribution of this study to the literature is two-fold. First, it analyses thernmeaning of transaction costs in production and its consequences for productive inefficiencyrntheoretically. Second, it tests the significance of financial account management as an instrument torndeal with transaction costs in production.