Investigating the Relationship between the Efficiency and Size of Firms in Iran's Automobile Industry

This study aims to examine the relationship between firm size and efficiency in the automobile industry in Iran during the period of 1999-2016.

In this study, a two-stage method is used to investigate the relationship between firm performance and size.

In the first step, the performance of companies is measured using the DEA method. In the second step, using the panel data and the GLS method, the efficiency equation is estimated to examine the relationship between firm-size performances.

The results show that the export has a positive and significant effect on the performance of automobile companies. The age of the company is the U-inverse relationship with the efficiency of the company, so as the company's age increases; the threshold has a negative effect on efficiency. The geographical location of the company and the location of the company in Tehran have a positive and significant effect on the performance of automobile companies. Also, the size of the firm has a negative and significant impact on the performance of the automobile companies.