Financial Performance Of State-owned Enterprises Research Articles

Evaluasi Kinerja Keuangan PT PLN (Persero) dalam Satu Dekade: Pendekatan Deskriptif dan Naratif

Purpose: This study aimed to evaluate the financial performance of PT PLN (Persero) over the last decade. This study identifies the trends, changes, and factors affecting companies’ financial performance. Research methodology: The methodological approach used in this research was descriptive and narrative. The financial data of PT PLN (Persero) are collected from annual reports, financial statements, and other secondary data sources. Results: This study found that the financial performance of PT PLN (Persero) showed significant variation over the past decade. While there were improvements in some financial ratios, there were also periods of decline caused by internal and external factors, such as regulatory changes, fuel price fluctuations, and government policy changes. These findings indicate the need for more adaptive and innovative management strategies to improve future financial performance. Limitations: This study has several limitations, including the limitation of data covering only one decade and reliance on secondary data that may not accurately reflect the current conditions. Additionally, this research focuses only on financial aspects and does not cover non-financial factors that may affect the performance of PT PLN (Persero). Contribution: This study contributes to the literature on the evaluation of the financial performance of state-owned enterprises (SOEs) in Indonesia, particularly in the energy sector. The findings of this study can be used in the management of PTPLN (Persero) to improve financial and operational strategies.

State-owned enterprises as countercyclical instruments: Quasi-experimental evidence from the infrastructure sector

This paper examines the effects of a negative macroeconomic shock on the financial performance of state-owned enterprises (SOEs) in infrastructure. The main aim of the paper is to explore whether SOEs serve as countercyclical instruments or whether they end up generating fiscal costs during a downturn, perhaps amplifying negative shocks. The paper introduces a new measure of fiscal injections that includes subsidies, equityrecapitalizations, and loans from the government, other SOEs, or state-owned financial institutions. The empirical setup uses a quasi-experimental setting that exploits the differential effects of a drastic fall in oil prices (in 2014–15) for SOEs in countries that experience a negative aggregate demand drop as a consequence of this shock versus similar firms in countries that do not suffer a downturn from the shock. The results—based on a balanced sample using coarsened exact matching and a differences-in-differences estimation—show that SOEs in treatment countries received increases in fiscal injections as a percent of average assets of 3.5 percent the year after the shock, equivalent to a significant recapitalization. These fiscal injectionstake the form of equity injections and loans from the government and state-owned financial enterprises. The results also show that capital expenditure as a percent of average assets in fully owned infrastructure SOEs decreased by 3.5 percentage points the year after the negative shock, equivalent to a 40 percent decline relative to its average level. In sum, this paper presents evidence that shows that SOEs do not serve as countercyclical tools and, in fact, may amplify negative shocks by requiring fiscal injections for SOEs while also lowering their capital expenditures.

The Power of Voice: Non-State Shareholders and the Labor Redundancy of SOEs

ABSTRACT This paper investigates the impact of non-state-shareholders on the labor redundancy of state-owned enterprises (SOEs). We find that the participation of non-state shareholders helps to reduce the labor redundancy in SOEs. Specifically, non-state shareholders cannot reduce the labor redundancy in SOEs only with holding shares, while they can effectively mitigate the labor redundancy problem by appointing directors to the board. Furthermore, we find that non-state shareholders play a greater role in reducing the labor redundancy for highly labor-intensive SOEs and firms with strong government intervention. Finally, we document that non-state-shareholders help improve the operational and financial performance of SOEs.

A study comparative of PSI, PSI-TOPSIS, and PSI-MABAC methods in analyzing the financial performance of state-owned enterprises companies listed on the Indonesia stock exchange

This research provides deeper insight into the advantages and disadvantages of each MCDM method in the context of evaluating SOE performance rankings. This research also shows the peformance of PSI which is used singly and integrated with other MCDM methods to determine the company?s financial health. Financial health can be reviewed through the company?s financial performance based on its financial ratios. The financial ratio criteria used include Current Ratio (CR), Debt to Equity Ratio (DER), Total Asset Turnover (TATO), and Return on Asset (ROA) as the basis for ranking. The Preference Selection Index (PSI) method is used to determine the weight of criteria and analyze the company's ranking through the identified criteria, while the Preference Selection Index-Technique for Order of Preference by Similarity to Ideal Solution (PSI-TOPSIS) and Preference Selection Index-Multi-Attributive Border Approximation Area Comparison methods (PSI-MABAC) is used to continue the weighting process on the PSI method with the results of the rankings of state-owned companies listed on the IDX. The Spearman rank correlation was determined to compare the PSI, PSI-TOPSIS, and PSI-MABAC methods. The results of the comparative analysis showed that PSI-TOPSIS and PSI-MABAC had a greater correlation compared to PSI.

THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE ON STATE-OWNED ENTERPRISES

This research was conducted with the aim of determining whether corporate governance, as indicated by board size, audit committee size, the proportion of independent directors, and the proportion of independent commissioners, affects financial performance, measured by return on equity. The study was conducted on state-owned enterprises (“SOE”) listed on the Indonesia Stock Exchange from 2019 to 2022. The research used an empirical data analysis method by collecting data from the annual financial reports of publicly listed companies in Indonesia, from which 15 companies were selected. The research data was processed using multiple regression analysis with Microsoft Excel 2019 and EViews 12. The results of the study show that corporate governance significantly influences the financial performance of state-owned enterprises (SOE). Variables such as audit committee size and the proportion of independent commissioners have a positive impact on financial performance, while board size and the proportion of independent directors do not affect financial performance. The research findings emphasize the importance of implementing good corporate governance practices in state-owned enterprises. This includes having a broader audit committee and increasing the proportion of independent commissioners on the board of directors. By optimizing these aspects, state-owned enterprises can enhance their financial performance.

Analysis of the Financial Performance of State-Owned Enterprises (SOEs) in the Mining Sector Listed on the Indonesia Stock Exchange in 2018-2022

This study aims to analyze the financial performance of mining companies owned by the State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange. The objects taken in this study are mining companies listed on the Indonesia Stock Exchange in 2018-2022, with company codes PTBA, ANTM, and TINS. Analysis of corporate financial performance based on liquidity, activity, solvency ratio, profitability ratio, and DuPont analysis shows increases and decreases in value, but none are consistent. The results of the performance analysis of the three companies are expected to provide an overview to the management of the company concerned to develop future performance improvement strategies, as well as to investors as a basis for comparison, projections, and decision-making in investing in companies in the mining sector, especially mining companies owned by SOEs

The Effect of Budget Control on Financial Performance among State-Owned Enterprises: Towards Enhancing A Budget Management Control Policy

Rwanda’s state-owned enterprises (SOEs) are suffering from poor financial performance. For instance, 60% of them are at a loss from 2016-to-date. For example, five companies, KTRWANDA NETWORKS, MARAPHONE RWANDA, and AFRICA OLLEH SERVICES LTD, which are 49%, 95%, and 49% respectively owned by the government of Rwanda, have accumulated US$5 million in losses each year for the last five years. Based on the above problem, the study intended to assess the link between budget control and the financial performance of SOEs in Rwanda. The study analyzed the seven objectives. The components of budget control understudy include budget planning, budget control, budget implementation, and budget review. The components of financial performance are Liquidity, Profitability, and Solvency. The research is descriptive research using both qualitative and quantitative approaches. It is also correlational research because it tested the relationship between budget control as an independent variable and financial performance as the dependent variable. The respondent of this study is 106 employees of seven selected SOEs. The researcher used the questionnaire to collect primary data and as an instrument of the study. And financial report for secondary data. Descriptive statistics like Frequency and Percentage and mean and inferential statistics Correlation and regression were used to analyze data. Findings showed that in general, the level of budget planning was high with a mean of 3.75. In the general, the level of budget implementation is high with a mean of 3.78. In general, the level of budget review is high with a mean of 3.67. In general, the level of liquidity in the companies was high with a mean of 3.66. In general, the level of profitability was moderate in the last five years, with a mean of 2.96. In general, the level of solvency was high with a mean of 3.59. Generally, there is a low significant relationship between Budget Control and financial performance with a coefficient of correlation of 0.384 with a P-value of 0.000. The multiple regressions showed R Square is 0.217 showing that the budget control contributes 22% to financial performance. The challenges related to budgeting control include unpredictable market, cash flows constraint, overspending versus planned, Rigid Decision-Making, Lack of trained and skilled labor, No clear budget lines in place and absence of regular budget control, limited is available to cash, Unbudgeted activities, Not complying to the rules and regulations of the budget, Insufficient cash to meet the budgeted costs, Unplanned activities due to government priorities, fluctuation in prices for commodities and Cash inflation. The challenges related to financial performance include the Lack of modern technology, High expenses and not achieved expected revenues, lack of a core system that can control all finance modules, Accuracy and timely arrival of monthly management reports, Lack of Ownership of finance performance by all staff, Recovery that may take longer than expected, Risks associated with worldwide inflation, Cost of importation, Poor marketing and reliance on public tenders. Good investment analysis, poorly managed subsidiaries. As recommendations, the management should strive to increase the profitability of their companies from a moderate level to a high level. The management should try to increase the effect of budget control on financial performance which was 22%. The management should make a deep analysis to check why their Budget planning is not affecting their financial performance when it is known that there should be a positive effect.

Analysis of the Financial Performance of State-Owned Enterprises in the Infrastructure Sector Listed on the Indonesia Stock Exchange

State-Owned Enterprises are business entities whose capital is mainly sourced from the state and has a role in providing for society's needs. This research aims to find out and compare the performance of companies that focus on the company's financial aspects based on the assessment of eight financial ratio indicators in the Decree of the Minister of SOEs Number: KEP-100/MBU/2002 on state-owned companies in the infrastructure sector on the IDX in 2019-2021. This research used descriptive qualitative method. The results showed that PT. Telekomunikasi Indonesia Tbk and PT.Wijaya Karya Bangunan Gedung Tbk are the state-owned company with a healthy financial performance from 2019 to 2021.

State-Owned Enterprises (SOEs): The Role in Economic Development and The Determinant of Its Performance

The Indonesian government conduct several strategies to enhance the SOE’s performance. However, some financial indicators show that reform program has not optimally achieved the objective to enhance the SOE performance. Therefore this paper is aimed to discuss some underlying factors that influence the SOE performance. As a result, the study found that contribution of Indonesia SOEs to economy is relatively low and stagnant. Besides that, many SOEs have not yet operated optimally. The regression result show the financial condition of the SOE is getting better when it have higher ability to generate profits and pay off debts. In addition, ability to pay off the debts is more important to maintain the financial performance of SOEs, than ability to generate profit. This study also indicate inefficiency in managing employee and policy formulation in Indonesia’s SOE.

Corporate Governance and Financial Performance of State-Owned Enterprises Compared to Listed Firms in Zambia: 2002-2017

The study was a comparative analysis of the corporate governance practices and firm financial performances between State-Owned Enterprises and listed firms in Zambia. Using a cross-sectional panel data set covering the period 2002 to 2017, the t-test statistic was employed to compare the corporate governance practices and firm financial performances between unlisted State-Owned Enterprises, listed State-Owned Enterprises and listed private firms. It was found that corparate governance practices and firm financial performances between State-Owned Enterprises and listed firms in Zambia were significantly different. The board sizes for listed firms were statistically significantly less than those of State-Owned Enterprises and the proportion of non-executive directors on the boards of listed firms were also statistically significantly less than those of State-Owned Enterprises. On the other hand the proportion of female directors on listed firms were statistically significantly more than those of unlisted State-Owned Enterprises. In terms of firm financial performance, it was found that the mean of the Return on Total Assets for listed private firms was statistically significantly greater than the mean for unlisted State-Owned Enterprises. There were significant effect sizes in all the measured variables. This was a country specific study that contributed to the empirical knowledge on corporate governance practices and financial performances in State-Owned Enterprises and listed firms. The findings are of interest to researchers, corporate governance practitioners and government policy makers.

Research on the Impact of Actual Tax Bearing Rate on the Financial Performance of Enterprises.

This paper is based on financial data analysis of 241 listed pharmaceutical manufacturing enterprises in China, we study the different effects of different tax reduction policies on the financial performance of enterprises in the short term and long term. Through the verification of practical examples, it could be found that the implementation of a tax reduction policy can indeed play a positive role in the financial performance of enterprises, and the reduction of income tax significantly improves the short-term financial performance of enterprises. However, the tax reduction of turnover tax significantly enhances the long-term financial performance of enterprises, and the effect of tax reduction on the financial performance of state-owned enterprises is better than that of non-state-owned enterprises. Generally speaking, tax reduction policy has a better effect on the financial performance of non-state-owned enterprises and enterprises in central and western regions than state-owned enterprises and enterprises in eastern regions.

Analisis Kinerja Keuangan Badan Usaha Milik Negara (BUMN) Se-Kota Palembang

This study measures the financial performance of State-Owned Enterprises (BUMN) throughout the city of Palembang from 2014-2018 using profitability ratios and liquidity ratios. The phenomenon that occurred in one of the State-Owned Enterprises (BUMN) in the city of Palembang in 2019 experienced a decrease in profit compared to the previous year. The type of research conducted in this study uses quantitative research in the form of financial reports. The approach in this study uses a descriptive approach. The types and sources of data used to support the discussion carried out in this study are secondary data. Secondary data obtained and collected by researchers related to financial statements. The population in this study were all State-Owned Enterprises (BUMN). The sample in this study was selected using the purposive sampling method of State-Owned Enterprises throughout the city of Palembang such as PT. Pupuk Sriwidjaja (Persero) and PT. Semen Baturaja Tbk (Persero). The results obtained after analyzing the financial performance of two State-Owned Enterprises (BUMN) from 2014-2018 from PT Pupuk Sriwidjaja (Persero) and PT. Semen Baturaja Tbk (Persero) showed poor results in terms of profitability and liquidity ratios. The profitability ratio as measured by the profit margin ratio, Return on Assets (ROA) and Return on Equity (ROE) indicates a decline in financial performance for five years. The liquidity ratio as measured by the quick and current ratio shows a decline in financial performance from 2014-2017. It was only in 2018 that the fast and smooth ratio showed an increasing graph.

Corporate governance and financial performance of state-owned enterprises in Kenya

PurposeThis paper aims to report the results of an investigation into the effect of aggregate and individual corporate governance factors on the financial performance of state-owned enterprises (SOEs) in Kenya.Design/methodology/approachThe paper uses balanced panel data regression analysis on a sample of 45 SOEs in Kenya for a four-year period (2015–2018).FindingsThe panel data analysis results show that board meetings, board skill and gender diversity individual provisions of corporate governance are significantly and positively associated with capital budget realization ratio (CBRR). Moreover, the study finds that aggregate corporate governance disclosure index, board sub-committees, board size and independent non-executive directors are positive but insignificantly related to CBRR.Research limitations/implicationsThe current study is based on secondary data, other methods of knowledge inquiry such as interviews and questionnaires may provide additional insights on the effectiveness of corporate governance on financial performance.Practical implicationsOverall, the results imply that corporate governance influences the performance of SOEs in Kenya. The results suggest that Mwongozo Code of Corporate Governance provisions should be changed to increase the number of women representations on board and the number of directors with doctoral qualifications because of their positive impact on the financial performance of SOEs in Kenya. Also, policymakers with remit over SOEs should re-evaluate why other corporate governance appear not to have an impact with a view of making the necessary changes.Originality/valueThe paper contributes to the dearth of literature on the efficacy of corporate governance on the financial performance of SOEs in developing countries.

The microeconomic effects of temperature changes

This paper uses financial data from listed Chinese manufacturing companies, combined with meteorological data, to estimate the microeconomic effects of temperature changes. By constructing seasonal average temperatures, we find that average summer temperatures significantly reduce the financial performance, while average winter, spring, and autumn temperatures do not have a significant effect on the corporate financial performance. We further find that the effect of temperature changes on corporate financial performance is nonlinear through temperature bins variables. Both extreme low temperatures (<-12 °C) and high temperatures (>27 °C) have a negative impact on corporate financial performance. The mechanism tests find that high temperatures not only reduce the labor productivity of firms, but also increase the corporate adaptation actions, leading to increased adaptation costs, crowding out productive funds and causing a capital mismatch. Further heterogeneity analysis confirms that the magnitude of the negative effect of temperature changes is limited by the enterprise nature and the region in which the firm is located. The financial performance of state-owned enterprises, firms in the south and developed regions are more vulnerable to high temperatures. This study provides a policy basis for mitigating the negative effects of temperature changes and provides new empirical evidence for climate governance.

Corporate Governance and Intellectual Capital: Impact on the Financial Performance of State-Owned Enterprises in Indonesia

Using company size and leverage as control variables, this study aims to evaluate the influence of institutional ownership, an independent board of commissioners, an audit committee, and intellectual capital on financial performance. The population in this study is all state-owned companies registered with the Ministry of SOEs with a period of observation for 4 years, namely in 2016-2019. Purposive sampling was used in this study to collect samples, and a total of 164 samples were collected. The data analysis methods utilized in this study include descriptive statistical tests, classic assumption tests, and hypothesis testing utilizing multiple regression analysis by SPSS 25 version. According to the findings of this study, institutional ownership and intellectual capital have a substantial beneficial influence on financial performance, whereas the independent commissioner has a large negative effect on financial performance and the audit committee has no effect on financial performance.

Corporate Governance and Firm Performance in State-Owned Enterprises (SOEs) in Zambia: A Systematic Review

The research systematically documented and described the corporate governance practices and financial performance in State-Owned Enterprises (SOEs) in Zambia from 2006 to 2017. The research design that was adopted was the descriptive research design to systematically describe the corporate governance practices and financial performance of SOEs in Zambia. The corporate governance attributes for SOEs such as board size, board appointing authorities and board membership have been found to be prescribed by a diversity of Acts of Parliament for different SOEs. This finding suggests that the governance of these entities could be a challenge insofar as the uniformity of the legal framework for the governance of the entities was concerned. In addition to this, board membership which are designated by specific government positions rather than merit based, compromises board effectiveness. The study has further shown that failure to produce and publish, for public scrutiny, audited financial statements on a timely basis leads to lack of transparency and accountability. The financial performance has been found to have been poor as the SOEs on average produced negative returns on total assets and the SOEs were highly geared based on operating gearing and financing gearing. Lastly, financial performance of SOEs and the corporate governance practices differed significantly across different industries under which the SOEs operated.

Analisis Rasio Keuangan Dan Metode Economic Value Added (EVA) Untuk Menilai Kinerja Keuangan Perusahaan

State-owned enterprises (BUMN) liquid a form of government investment that manages the life of many people, state-owned construction (KARYA) liquid state-owned enterprises that focus on the field of considerable construction is very influential in all aspects of the country. Entering the era of globalization and the demands of construction services users to the company's performance permissible better. The very strict competition between construction companies can pose a risk of competition in the financial performance of state-owned enterprises (KARYA), so that state-owned enterprises are still weak in the mastery of local project (market). This research aims to identify financial performance in the STATE of construction (KARYA) from the level of liquidity, solvency, and profitability and examined by the economical value-added method (EVA) to know the value added economy in the company'S construction Field (KARYA). This method of study uses a quantitative descriptive method with the approach of financial analysis and the use of economic value-added methods (EVA). Using data will be financial from Tofu 2015 S. D 2018. Based on the results of the analysis of financial performance of the 4th (four) enterprises in the work in the field of poor debt acquisition is a major factor and added economic value shows less good results because fewer companies obtain positive value. This should be the company to maintain liquidity ratio value..&#x0D; &#x0D; Keywords: Financial Ratio Analysis, Economic Value Added, BUMN Construction

The Effect of the Xi Jinping Administration’s Anticorruption Campaign on the Performance of State-Owned Enterprises

There has been a debate on how the state-driven anticorruption movement during the Xi Jinping administration has influenced state-owned enterprises (SOEs). Research has examined the relationship between corruption and economic development at the country level in Asia and has found paradoxically that economic growth and high corruption levels can coexist. However, the “Asian paradox” that appears at the country level may be a transitional phenomenon of the short term. Not many researchers have empirically compared individual firm-level performance before and after a strong anticorruption drive, drawing on relevant comparison groups. This study tests whether Xi’s 2012 anticorruption campaign improved SOEs’ performance. With a difference-in-differences method, it explores whether the anticorruption campaign had different effects on the financial performance of SOEs and non-SOEs (private companies). We find that the anticorruption initiative improved SOEs’ financial performance and benefited SOEs more than non-SOEs.

Non-commercial goals and financial performance of state-owned enterprises – some evidence from the electricity sector in the EU countries

This study considers the financial performance of state-owned enterprises (SOEs) in relation to non-commercial goals. We focus on enterprises operating in the production of electricity sector in the EU countries and analyse their profitability conditioning on the level of electricity prices. We reveal that SOEs underperform as compared to their privately owned counterparts when they operate in those markets that have lower prices. This suggests that their profitability is likely to be substantially affected by pursuing goals other than profit-maximisation - providing crucial products and services at affordable prices - and emphasises a need to consider the non-commercial objectives of SOEs in the empirical research.

Privatisasi dan Dampaknya Terhadap Kinerja Keuangan Badan Usaha Milik Negara (BUMN) di Bursa Efek Indonesia

This research aims to determine the impact of privatization on the financial performance of State-Owned Enterprises (SOEs) in the Indonesia Stock Exchange. This type of research is comparative, data sources using secondary data with data collection techniques using documentation and literature studies.The population in this research is all State-Owned Enterprises (SOEs) that have been privatized in IDX. The sampling method uses purposive sampling with 5 companies. Data analysis techniques using normality testing, independent sample T-test, and Wilcoxon test. The results showed that there was a difference in the financial performance of SOES after privatization was seen from the ratio of solvency, activity, and solvency with significance values of 0.030, 0.170, and 0.001. Whereas if viewed from the liquidity ratio, the privatization does not give the difference in the financial performance of the State-Owned Enterprises (SOEs) in IDX with a significance value of 0.088. This insulation also finds that privatization has a bad impact on the performance of State-Owned Enterprises (SOEs) from profitability and activity ratios, but has a good impact when viewed from the ratio of solvency and liquidity.