Test Of Structure-Conduct-Performance And EfficientStructure Hypotheses In Sugar Industry Of Pakistan

Year 2018, Volume: 25 Issue: 3, 913 - 923, 28.12.2018

Samina Begum

https://doi.org/10.18657/yonveek.337949

Cited By: 2

Abstract

In this study the validity of
Structure-Conduct-Performance (SCP) and efficient-structure (ES) hypotheses is
empirically tested in the sugar industry of Pakistan. The data set consists of
the 29 sugar mills registered at the Karachi Stock Exchange (KSE) for the
financial year 2011. To test the relation of market power, efficiency and
performance, we used market concentration and market share as the measurement
of market power. In addition, the DEA method to measure firm’s efficiency,
while ROE is used as an indicator of performance and three control variables.
The result of this study support the traditional SCP hypothesis and indicates
that there is positive and significant relation between market concentration
and performance, while Reject the ES hypothesis.

Keywords

Structure-Conduct-Performance, Efficient-structure, Data Employment analysis, Sugar industry

Test Of Structure-Conduct-Performance And Efficient-Structure Hypotheses In Sugar Industry Of Pakistan

Abstract

In this study the validity of
Structure-Conduct-Performance (SCP) and efficient-structure (ES) hypotheses is
empirically tested in the sugar industry of Pakistan. The data set consists of
the 29 sugar mills registered at the Karachi Stock Exchange (KSE) for the
financial year 2011. To test the relation of market power, efficiency and
performance, we used market concentration and market share as the measurement
of market power. In addition, the DEA method to measure firm’s efficiency,
while ROE is used as an indicator of performance and three control variables.
The result of this study support the traditional SCP hypothesis and indicates
that there is positive and significant relation between market concentration
and performance, while Reject the ES hypothesis.

Keywords

Structure-Conduct-Performance, Efficient-structure, Data Employment analysis, Sugar industry

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