Chang, H. 1996. The Impact of Market Liberalization on Firm Performance: Evidence from U.S. Telecommunications Industry. NTU Management Review, 7 (1): 131-162
Hsihui Chang, Department of Accounting, National Chengchi University
Abstract
This paper examines the impact of market liberalization on various dimensions of firm performance in the U.S. telecommunication industry. Using a new multi-period, multi-output ratio analysis model which disaggregates performance measures into several detailed components, the paper evaluates the performance of thirty-nine major companies in the local exchange sector over three time periods 1981, 1984 and 1987. The empirical results indicate that market liberalization has had significant impacts on different dimensions of firm behavior and performance in the telecommunications industry.
Keywords
Market liberalization Firm performance Ratio analysis Telecommunication industry Profitability