Abstract
ABSTRACTState-owned enterprises (SOEs) pursue multiple goals to maximize public welfare. Therefore, governments must evaluate both their economic efficiency and their social effectiveness. However, government performance evaluation (GPE) of SOEs may be affected by political motives. This paper investigates whether SOEs are fairly evaluated by governments during political events. Using Korean data, we find no significant relation between public elections (presidential and national assembly elections) and the financial performance of SOEs. However, the GPE scores of SOEs are significantly lower in years in which a public election is held than in other years. In addition, the GPE of SOEs can be an important determinant of whether or not to replace CEOs. This research sheds light on the political use of the GPE for SOEs.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
