Performance Of SOEs Research Articles

Construction of a Model for Evaluating the Operating Efficiency and Performance of State-Owned Enterprises Using Fuzzy Comprehensive Evaluation

State-owned energy, transportation, and telecommunications enterprises power many countries' economies and societies. Considering commercial and social objectives, SOE performance evaluation is complex. Rather than innovation, sustainability, and stakeholder satisfaction, financial factors have determined SOE's success. The present study simulates an SOE Fuzzy Comprehensive Evaluation approach to overcome the constraint. The model encompasses quantitative and qualitative performance. The proposed model prioritizes the whole evaluation aim and follows it with performance criteria and sub-criteria. This paper used the analytical hierarchy process with expert survey input to fine-tune the standard weights. Fuzzy logic addresses the uncertainty in qualitative analysis. This method performs traditional financial ratio analysis, balanced scorecard, and data envelope analysis

Corporate governance matters: How do reduced state-owned shares lower firms’ market power in a developing country?

Corporate governance refers to certain approaches by which a company's stakeholders can receive a return on investment, one of which is to solve the agency problems that can arise from the separation of ownership and control. However, the basis for effective corporate governance is that the country has a mature modern corporate institution. The question of whether corporate governance can be effectively applied in firms in developing countries remains unclear. This study explores the influence of corporate governance in developing countries in the early stage of establishing a modern corporate institution. We use incremental job loss cost and agency cost reduction to represent the two consequences of corporate governance. Our estimates confirm a negative relationship between reduced state-owned shares and state-owned enterprises' (SOEs) market power and reveal the mediating effect of corporate governance on this negative relationship. Reduced state-owned shares can influence corporate governance and reduce agency costs. We also provide novel findings indicating that what really makes SOEs' market power decrease is the cost of job loss; however, we determine that the decline of market power is not necessarily a negative consequence as reduced state-owned shares can significantly promote the performance of SOEs by reducing market power. Our conclusions remain robust following a series of endogeneity tests. The study sheds new light on corporate governance by examining the relationship between corporate governance, SOE reform and employee welfare costs for the first time.

Analisis Penerapan Sentralisasi Fungsi Akuntansi dan Keuangan dalam Perusahaan Holding: Studi Kasus PT Semen Indonesia (Persero) Tbk

PT Semen Indonesia (Persero) Tbk. (SIG) is one of the state-owned companies that since 2013 has transformed into a Strategic Holding. SIG has 17 Subsidiaries (AP), consisting of 8 Cement Making companies and 9 non Cement Making companies. Of the Cement Making Companies, 3 APs whose share ownership is 99.9% owned by SIG, namely PT Semen Padang, PT Semen Tonasa and PT Semen Gresik. This research was conducted at PT Semen Indonesia (Persero) Tbk. (SIG). The objectives of this study are (1) analyzing the implementation of Policies & SOPs at PT SIG, (2) Effectiveness of the implementation of centralization of Accounting & Finance functions at PT SIG. The basic method used is descriptive with the implementation of case studies. Data collection was carried out by interview, observation, Forum Group Discuss (FGD) and documentation methods. The results showed that the implementation of Holding Policies & SOPs in Subsidiaries (AP) has been implemented well based on periodic reviews and as an effort to create added value for the group, efficiency, and better performance of SOEs.

Green finance and the synergy of ESGGI performance of Chinese companies: Does green concern matter?

This study aims to investigate green finance's impact on the synergy between ESG and green innovation (ESGGI) performance and examine the potential influence played by stakeholders' green concerns on this impact. Hence, we calculated the synergy of ESGGI performance based on the entropy method and the coupled coordination degree model and conducted regression analyses on the data of 1143 Chinese companies from 2012 to 2020. The results reveal a remarkable inverted U-shaped relationship between green finance and the synergy of ESGGI performance. Additionally, the green concerns of the government and the media can efficiently moderate green finance's impact on the synergy of ESGGI performance. Further tests show that green finance's impact on the synergy of ESGGI performance of SOEs, HPEs, and HTEs is more significant. This paper demonstrates an association between green finance and the synergy of ESGGI performance, which yields new insights for companies to implement green transformation and sustainable development.

Anti-corruption campaign and capacity utilization of state-owned enterprises: Evidence from China’s central committee inspection

Firms cannot utilize capacity probably rooted in factors beyond technical constraints, like corruption. This paper systematically investigates the causal effect of the anti-corruption campaign (ACUC) on corporate capacity utilization. Based on the financial data of China’s state-owned listed companies from 2007 to 2018, we calculate the firm-level capacity utilization rate and employ central committee inspection (CCI) as a quasi-natural experiment to come to the following findings. Firstly, we find that the anti-corruption campaign significantly increases the capacity utilization of SOEs by 10.4 percentage points, which remains robust across a set of robustness checks. Secondly, anti-corruption campaign affects corporate capacity utilization by diminishing agency cost, improving investment efficiency and promoting technological innovation. Thirdly, the positive policy effects are more pronounced for firms with a lower level of capacity utilization and weaker motivation for political promotion. Finally, we find the impact spillover through the supply chain, but only for suppliers to customers. And the multiple-treatment effects are insignificant. Our findings highlight the evidence of having an anti-corruption campaign for enhancing the operational efficiency and performance of SOEs and provide new views for emerging markets on how to supervise SOEs.

Enhancement of the intrinsic Ni/GDC activity under rSOC operation by means of Fe–Au doping: An electro-kinetic study

The investigation dealt with the effect of Fe and Au wt.% concentrations on the enhanced performance and stability of Ni/GDC under rSOC operation. Moreover, it focused on the comparison of the intrinsic electro-kinetics between the best performing Fe–Au-modified cell and Ni/GDC under SOE operation. The rSOC performance and stability of all cells was examined in the temperature range of 900–800 °C. The electro-kinetic measurements took place at 900 °C by varying the pH2O. All Fe–Au–Ni/GDC electrodes exhibited enhanced activity, compared to the SoA Ni/GDC, with variations in their stability after three rSOC cycles. Specifically, the fuel electrode with the lowest wt.% concentration in Fe and Au (0.5Fe–1Au–Ni/GDC) exhibited the highest activity and stability under rSOC operation. By increasing the wt.% loadings to 2 wt% Fe and 3 wt% Au, there was rapid degradation of the initially high performance, mainly due to increase of the ohmic resistance. SEM analysis showed higher macro-porosity on the reduced state of the modified electrodes, which in the case of the best performing 0.5Fe–1Au–Ni/GDC was the least affected after rSOC operation. Interestingly, the SOE performance of the examined Fe–Au-modified electrodes was not similarly inhibited by the decrease of temperature, compared to Ni/GDC. This was further clarified through electro-kinetic measurements, aiming to verify the effect from the Fe–Au doping on the intrinsic electrochemical activity of Ni/GDC for the H2O electrolysis reaction. Comparison between the SoA and the best performing 0.5Fe–1Au–Ni/GDC showed an enhancing effect on the intrinsic electro-kinetics of the modified electrode. Specifically, the dependence of the polarization resistance on the pH2O was found to be strongly positive, resulting in a higher apparent reaction order, compared to Ni/GDC.

Big health data for elderly employees job performance of SOEs: visionary and enticing challenges.

The method is providing and overview of the organization in the management perspective, within the health big data analysis, especially for the elderly employees, the organizations could sign the elderly employees within the right tasks, it reducing the costs by increasing the employees' job performance and organization performance. By addressing the importance role of big health data analytics (BDHA) in the healthcare system .moreover BDHA enables a patient's medical records to be searched in a dynamic, interactive manner. One billion records were made in two hours. Current clinical reporting compares large health data profiles and meta-big health data, giving health apps basic interfaces. A combination of Hadoop/MapReduce and HBase was used to generate the necessary hospital-specific large heath data. One billion (10TB) and three billion (30TB) HBase large health data files might be created in a week or a month using the concept. Apache Hadoop technologies tested simulated medical records. Inconsistencies reduced big health data. An encounter-centered big health database was difficult to set up due to the complicated medical system connections between big health data profiles. Associated with job performance such as the gender, current/past job positions and the health conditions are important. For genders the 66.36% of respondents in the experiments are females, 33.64 are males, majority of are healthy which are 66.97%, 30.58% are common geriatric disease, rest 2.45% are suffering from occupational disease; In terms of the current/past job positions, 20% of the respondents are working as accountant, followed by sales and management level. The Diagnostic and Statistical Manual, lists 157 distinct illnesses. Individuals may be diagnosed with one or more illnesses as a consequence of medical health professionals watching and analyzing their symptoms. It has been discovered that mental health issues have a negative impact on employees' job performance. For example, research on individuals with anxiety and depression has a direct impact on concentrations, decision-making process, and risk-taking behavior, which can be determined for job performance. Machine learning focuses on approaches that can be used to create accurate predictions about future characteristics based on previous training and post training. Principles such as job task and computational learning are crucial for machine learning algorithms that use a large amount of big health data.

Comparison of the Financial Performance of SOEs in the Building Construction Sub-Sector Listed on the Indonesia Stock Exchange for the 2020 and 2021 Periods

This study aims to compare the financial performance of SOEs engaged in the infrastructure sector, the building construction sub-sector, and conduct stock offerings on the Indonesia Stock Exchange for the 2020 and 2021 periods. This research is a descriptive type of research. The data used is in the form of company financial report data obtained from the STIEM Bongaya Makassar Investment Gallery and visiting the website www.idx.co.id to obtain supporting information. Financial ratio analysis techniques use liquidity ratios, solvency ratios, activity ratios, profitability ratios, and market value ratios to calculate company financial data. Financial report data that has been calculated using financial ratios is then analyzed and interpreted based on a comparison between the financial ratios of each company and the industry average value. Then do a comparison of the financial performance of the four companies to find out which company has a better level of financial performance. The results of the analysis show that of the overall financial ratios used, PT. Pembangunan Perumahan (Persero) Tbk. is a company that has better financial performance than PT. Waskita Karya (Persero) Tbk., PT. Wijaya Karya (Persero) Tbk., and PT. Adhi Karya (Persero) Tbk.

Characteristics of a Good Board of Directors for Indonesian SOEs Performance

Introduction/Main Objectives: This research aims to empirically show the positive influence of the board of directors' characteristics on company performance, proxied by female directors, political connections, economic and/or business educational backgrounds, and education levels. Background Problems: Essential characteristics are required to produce quality strategies because they directly affect the performance of SOEs, and Regulation PER-8/MBU/08/2020 of the Minister of SOEs restruc­tures the BOD to increase the proportion of women. Novelty: This research measures SOEs' performance from their financial, adminis­trative, and operational aspects. It comprehensively assesses the dual function of SOEs as public servants and producers of state profits. Research Methods: A total of 245 Indonesian state-owned enterprises were examined between 2014 and 2019 using panel regression with the random effect model. The companies’ performance data were obtained from the Information Management and Documentation Officer (PPID) of the Ministry of SOEs of the Republic of Indonesia (RI). Finding/ Results: The results show that female directors and political connections positively influence the performance of SOEs. According to the robust­ness test, directors with economic and/or business education backgrounds positively influence the financial performance, and the higher the education level is, this negatively influences the performance of SOEs. Conclusion: Essentially, this research supports the plan of the Minister of SOEs to increase the proportion of women on the boards of directors. The findings also prove that political connections strengthen the personal qualities of SOE directors, whether they are female or not.

Monitoring and Evaluation for Education and Accountability in Edmund Rice Foundation Australia Nairobi County

Purpose: This study examined the relationship between corporate governance attributes and performance of state-owned enterprises through review of literature. The study specifically sought to establish the relationship between corporate governance attributes of accountability, transparency, transformational leadership and stakeholder engagement; and performance of state-owned enterprises with government policy objective as the mediating variable. The study was anchored on Agency, Signalling, Transformational Leadership and Stakeholder Theories to narrow the literature gap.
 Methodology: The study adopted desk research design through reviewing of relevant literature relating to corporate governance attributes and performance of state-owned enterprises. The study also summarized major contributions of significant studies on the relationship between corporate governance and performance. In addition, the study discussed the theoretical and methodological gaps in the reviewed literature on corporate governance and performance for further research.
 Findings: Reviewed primary and secondary literature sources showed that, more transparency allows for greater accountability and contributes to better performance by state-owned enterprises. Further, countries that have been able to improve their corporate governance standards and practices have also been able to improve the business environment for and performance of both private and state-owned companies. In addition, SOEs’ performance is influenced by adoption and implementation of corporate governance practices. However, the difference in financial performance of SOEs may be due to several factors including set government policy objectives that constrain the performance of the SOEs. Moreover, countries with ineffective governance and low accountability continue to experience weak SOE performance, poor delivery of public services, stifled competitiveness and growth including through the crowding-out of private companies and increased opportunities for political patronage and corruption.
 Unique contribution to theory, practice and policy: The study recommended that the principal objective of SOE reforms should be to improve SOEs’ accountability and efficiency by establishing and enforcing adequate reporting of their performance while holding them accountable for reaching or their targets. In addition, the state ownership policy should fully recognize SOE’s responsibilities towards stakeholders and request that SOEs report on their relations with stakeholders. Further, it should make clear any expectations the state has in respect of responsible business conduct by SOE.

The Influence of Intellectual Capital and Innovation on the Performance of SOEs in the Banking Sector in Indonesia

Purpose- This study aims to determine the effect of intellectual capital, which includes Human Capital (HC), Structured Capital (SC), Capital Employed (CE), and innovation on the performance of SOEs in the Banking Sector in Indonesia
 Methodology- This study uses various research and secondary data from journals and books.
 Findings- The findings indicate that Intellectual capital, including Human Capital, Structural Capital and Capital Employed, relates positively to organisational performance in the banking sectors. The results also support the argument that innovation played an important role in organisational performance in the banking sectors.
 Research Implications- This study limits its generalisations since it is limited to the effect of intellectual capital and innovation on the performance of the company (issuer) in SOEs in the Banking Sector.
 Practical Implications- The present study provides insight and knowledge for investors before making financial decisions, such as investment decisions and other investment instruments, to minimise possible risks. This study is expected to be used as a source of information and learning to measure the performance of the company (issuer) and to improve the quality of the company so that it is effective and improves the welfare of the company and its customers. It is hoped that this research can be used as a source of reference and consideration as well as theories for future research.

Financial Ratio Analysis to Predict Financial Distress at PT. Perkebunan Nusantara IV (Persero) Medan

This study is entitled "Financial Ratio Analysis to Predict Financial Distress Conditions at PT. Perkebunan Nusantara IV (Persero) Medan”. This study aims to analyze the ratio of leverage (Debt to equity ratio), liquidity (Current ratio) and profitability (Return on Assets) to predict financial distress at PT. Perkebunan Nusantara IV (Persero) Medan during the 2017-2019 period. This research was conducted using descriptive method with the employment of secondary data. This study also aims to determine the level of financial performance of SOEs (BUMN) based on the Decree of the Minister of State-Owned Enterprises No: KEP-100/MBU/2002 concerning the assessment of the financial health of SOEs. This study usedseveral ratio indicators, namely, Return on equity, Return on investment, Cash ratio,Collection period, Inventory turnover, Total assets turnover, and Total equity to total assets. Based on the results, PT. Perkebunan Nusantara IV (Persero) Medanobtained the health level of BB (Less Healthy). The results also showed that the leverage, liquidity and profitability ratio variables could predict financial distress at PT. Perkebunan Nusantara IV (Persero) Medan.

The Financial Performance and Macrofinancial Implications of Large State-Owned Enterprises in Sub-Saharan Africa

Using a newly-compiled dataset of state-owned enterprises in Sub-Saharan Africa, we present aggregate information about profitability, liquidity and leverage. We find that 40 percent of the close to 300 surveyed SOEs are unprofitable, while larger firms also tend to be illiquid and overleveraged. In cross-sectional regressions we find that SOE debt stock sustainability is impacted by firms’ profitability and liquidity, while macroeconomic factors cannot be shown to matter, expect for some governance variables. Based on these findings and citing country examples, we also illustrate that weak SOE performance may have a macrofinancial impact affecting bank soundness through delinquent loan exposures.

The Influence of Education, TNI-Polri Retirees and Independent Commissioners and Human Resources Development on Profitability

Abstract This study aims to examine the effect of the educational background of the director of operations and the board of commissioners, the presence of retired TNI-Polri as commissioners, the proportion of independent commissioners and the cost of developing human resource competencies on on the financial performance of SOEs. Financial performance is proxied by Return on Assets (RoA), educational background is proxied by education according to the company's line of business, retired TNI-Polri as commissioners are proxied by the presence or absence of commissioners who are retired TNI-Polri . Independent commissioners are proxied by the number of independent commissioners to the number of commissioners, while competency development is projected by the realization of costs for development and training.The research sample consisted of 15 State-Owned Enterprises listed on the Indonesia Stock Exchange (IDX) during the period 2016 to 2019, so that 60 samples were obtained. The analytical method used to test the hypothesis in this study is the multiple regression analysis method of panel data. The results of this study indicate that the educational background variable has a negative effect on profitability, commissioners who come from retired TNI-Polri have no effect on profitability, the proportion of independent commissioners has a positive effect on profitability and the cost of developing human resource competencies has a positive effect on profitability.

Analysis of Factors that Influence SOE'S Superior Performance with Cost Leadership as a Mediation Variable

This study aims to analyze the factors that affect the performance of State-Owned Enterprises or BUMN. The method of determining the sample using purposive sampling, and analyze the factors that affect the performance of State-Owned Enterprises. Research is finding that the variables that affect significantly the performance of state-owned enterprises are cost leadership, leverage, capital expenditure, growth, real earnings management activities, indicators of performance management, cash flow from operating, liquidity, taxes, size, contribution margin, and revenue. The originality of the research is, is the measurement of the variable cost leadership that is based on elasticity theory, and novelty in the measurement variable indicator of the performance of the management which is based on the criteria of the activity in judging the performance of SOEs. The implication of this research is to make it easier for SOE management to achieve performance targets by taking into account the magnitude of the coefficient of influence of key variables on the performance of SOEs.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia.
 Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data.
 Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected
 Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

PENGARUH KEPEMIMPINAN ETIS DAN GOOD CORPORATE GOVERNANCE TERHADAP KINERJA PERUSAHAAN BUMN DI INDONESIA

The purposed of this study to examined the influence of ethical leadership on the performance of SOEs in Indonesia, either directly or via a variable good corporate governance practices as a mediating variable. This study using both of primary data, ethical leadership variable and secondary data, good corporate governance index and performance of SOEs. SOEs performance are extracted from two type, first the company's health and assessment criteria for performance excellence. Both of these performance measures has been assesed both of by internal assessment and also the SOE and independent parties.This research used data of 63 state-owned enterprises with such criteria. Primary data such as ethical leadership data, obtained from the Vice President, Senior Vice President of 63 SOEs. SOEs data obtained from internal asesment and by independen party. Results of the study revealed that ethical leadership significant effect on organizational performance. Ethical leadership directly positive significant effect on organizational performance, while good corporate governance can not be a mediating variable. This study also proved significant influence ethical leadership positively to good corporate governance. Other findings, good corporate governance positively affects organizational performance. Ethical leadership a more direct impact on organizational performance compared to the indirect influence through the mediating variables of good corporate governance. The findings reveal the higher index of corporate governance and ethical leadership, the higher the performance of the organization.

The effect of the economic crisis on pay-performance link in South African state-owned enterprises

Purpose: The dissatisfaction with executive remuneration worldwide has increased because it is generally believed to have been instrumental to the 2008 Global Economic crisis. Central to this is the apparent unsatisfactory relationship between business performance and chief executive officer (CEO) remuneration. The primary aim of this study was to compare the pay-for-performance association between CEOs’ remuneration and state-owned entity performance before, during and after the economic crisis. It did so by assessing the chief executive remuneration link with state-owned enterprise performance from the period 2006 to 2014. Design/methodology/approach: Twenty-one schedule 2 state-owned enterprises in South Africa. This quantitative, longitudinal study, obtained secondary data from the annual reports of state-owned enterprises from the period 2006 to 2014. Ordinary least square multiple regression analysis was used as the principal statistical method. Findings/results: The findings indicate that the link between chief executive remuneration and state-owned entity performance demonstrated different patterns in the pre- and post-crisis periods. Practical implications: State-owned entity remuneration committees should place more emphasis on the financial efficiency measurements to enhance efficiencies in South African state-owned enterprises. Shareholders and regulators should take cognisance of measures to be used to assess the potential performance of state-owned entities, through executive remuneration, especially during an economic crisis. Findings could furthermore be of importance to other academics investigating this phenomenon. Originality/value: This research provides additional knowledge to the limited research available on SOEs in South Africa. Further, it reveals that an economic downturn affects the link between CEOs’ remuneration and SOE performance. This addresses a knowledge gap concerning the pay-for-performance link in South African SOEs and in emerging economies in general.

Do Market Performance of SOEs Outperform Private Firms? (A Case of Indonesia Exchange)

The purpose of the privatization strategy is to improve the performance of Stated Owned Enterprises (SOEs) that are considered to have a poor performance that is not better than the private companies. The data is collected from the company's annual report and from the Osiris Database. This research uses purposive sampling method and doing multiple linear regression test analysis to test the research hypothesis. The final sample of this study consisted of 454 years of company observation. This study finds that privatized SOEs have better levels of market performance than private companies. Regression test results show the coefficient of market performance of SOEs is positive and significant at the level 1%. These results indirectly indicate that the privatization strategy through IPO conducted by the government against several SOEs has been effective in improving the performance of SOEs.

Do distressed firms manage earnings?

Purpose: This research aims to test and analyze whether the central role of SOE compare with the phenomenon of financial distress will result in dysfunctional behavior. This motivates researchers to investigate SOE financial performance and behavior. Thus, this study aims to prove that the influence of financial distress on SOE and POE behavior is different. Design/methodology/approach: The researcher employs a quantitative approach to test the hypotheses. The data collected using documentation of financial data of 55 SOE and 135 POE listed in Indonesia Stock Exchange year 2014-2018. Distress status determines using Altman Z-score and earnings management measured using the Modified Jones Model. This study examines two groups of samples originating to test hypotheses using two independent sample t-tests. Findings: The research results succeeded in proving that SOE and POE react to a distressing condition in different ways. While SOE responds in the increasing pattern, means income maximization, the POE were in the opposite direction. Research limitations/implications: Scoring bankrupt prediction use only one equation, that is Altman Z-score, thus there are bias potential due to “no one-size-fits-all” view point. Practical implications: This result suggests that the government and other shareholders should be careful in making decisions concerning distressed SOE. Originality/value: Most earnings study was conducted in good financial performance in order to get a general conclusion. Since other scholars focus on how SOE performance in a “normal” situation, this research tries to investigate their behavior in the “abnormal situation.