This paper studies the relationship between accounting profits and technical efficiency of manufacturing enterprises in Shanghai during the period of 1989-1992 and examines which factors affect the profitability of manufacturing enterprises. We first estimate the average technical efficiency of four major manufacturing industries in Shanghai. Then, we test for the presence of ownership effects of technical efficiency on profits of those enterprises in these four industries.
Chow, K. W. C., Fung, K. Y. M., & Wan, K. H. K. (1997). Profitability, ownership structure and technical efficiency of enterprises in P.R. China: A case of manufacturing industries in Shanghai (HKIBS Working Paper Series 016-978). Retrieved from Lingnan University website: http://commons.ln.edu.hk/hkibswp/11