Abstract
The inefficiency of the State-Owned Enterprise is a matter of concern to economists. Among the studies carried out, those based on the theory of corporate governance were found. However, most of these studies focus on comparing the public enterprise governance with that of the private one. Thus, this article departs from this comparison towards an analysis of the governance of public enterprises to understand its inefficiency by examining the case of the Tunisian Railway Company. Starting with the approach used by Lehmann et al. (2002), it uses the Data Envelopment Analysis to evaluate the effectiveness of a governance system. The governance scores obtained were used to explain the ef¬ficiency variables for each year in the sample using regression in temporal data. The analysis revealed significant problems in governance mechanisms related to the lack of information transparency, weaknesses in functions of the government shareholder, and, in particular, control system failures.
Highlights
Since the 1970s, the inefficiency of State-Owned Enterprise has been the subject of several theoretical and empirical studies (Lin et al, 1998; Shleifer & Vishny, 1994; Boycko et al, 1996)
This article departs from this comparison towards an analysis of the governance of public enterprises to understand its inefficiency by examining the case of the Tunisian Railway Company
The analysis revealed significant problems in governance mechanisms related to the lack of information transparency, weaknesses in functions of the government shareholder, and, in particular, control system failures
Summary
Since the 1970s, the inefficiency of State-Owned Enterprise has been the subject of several theoretical and empirical studies (Lin et al, 1998; Shleifer & Vishny, 1994; Boycko et al, 1996) It was only in the late 1980s that studies on the efficiency of public enterprises, based on the theory of corporate governance, appeared (Charreaux, 1996). Studies focusing only on the governance of public companies remain limited (Daiser, Ysa & Schmitt, 2017; Grossi et al, 2015) It is in this sense that this article moves away from the public / private comparison and tends towards an analysis of the governance of the public company in order to understand its inefficiency. The article considers that inefficiency follows an iterative and cumulative process whose explanation can only be composite
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