This paper studies the relationship between accounting profits and technical efficiency of manufacturing enterprises in Shanghai during the period 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.
FUNG, K. Y. M., CHOW, K. W. C., & WAN, K. H. K. (1999). Profitability, Ownership Structure and Technical Efficiency of Enterprises in the People's Republic of China: A Case of Manufacturing Industries in Shanghai. Asia Pacific Journal of Management, 16(3), 351-367. https://doi.org/10.1023/A:1015460130983