Performance Of State-owned Enterprises Research Articles

Big data development and enterprise ESG performance: Empirical evidence from China

The development of big data has transformed the traditional production and governance models of enterprises while becoming a crucial engine for upgrading and achieving high-quality development. From the perspective of institutional and market conditions we construct a Big Data Development Index to investigate the mechanism of big data development on enterprise environmental, social, and governance (ESG) performance. Our empirical and theoretical research finds that big data development has a significant and positive impact on enterprise ESG which enhances enterprise ESG performance. The underlying mechanism suggests that the mediating effects of green innovation and information disclosure are significant, as big data development improves enterprise ESG performance by promoting green innovation and enhancing the quality of information disclosure. Further, heterogeneous effects indicate the promoting effect of big data development on ESG performance of state-owned enterprises and large enterprises is more pronounced.

Does the dual-credit policy promote the technological development of new energy vehicles? An industry chain reconstruction perspective

With the deep application of automation and digitalization technologies, the global automobile value chains are undergoing a new round of large-scale restructuring, and the traditional supply chain structure taken vehicle manufacturers as the core has been broken. The dual-credit policy (DCP), taking over the subsidies for new energy vehicles (NEVs), plays a vital role in reconstructing, transforming, and upgrading the automobile industry. The target group of DCP is passenger vehicle manufacturers, but it is unclear how its implementation will affect the NEV industry chain. To address this issue, this study examined the impact of the DCP on the innovation performance of automobile manufacturing enterprises using a DID (difference-in-difference) model based on the data of 693 listed advanced manufacturing enterprises in China A-shares from 2014 to 2021. The empirical results show that the DCP has significantly promoted the innovation performance of automobile manufacturing enterprises. In terms of supply chain role heterogeneity, the impact of the DCP on the innovation performance of parts manufacturers is more significant. Regarding enterprise ownership heterogeneity, the DCP has a greater impact on the innovation performance of SOEs(state-owned enterprises). In addition, regarding regional heterogeneity, enterprises in eastern and middle regions are significantly affected by the DCP to improve innovation performance.

Difference Research on the Influence of Government Audit on the Performance of State-Owned Enterprises

After collecting the relevant literature on how the government audit impacts the performance of state-owned enterprises, this study compares the differences in the impact of government audit on the performance of state-owned enterprises in various regions and sizes, and collects 8090 data from a number of A-share listed state-owned enterprises for empirical analysis. According to the empirical results, government audits can promote the performance of state-owned enterprises, and such an influence is different in various regions and scales of state-owned enterprises. Further research shows that compared with the state-owned enterprises in the eastern region, the government audits can better promote the performance of the state-owned enterprises in the central and western regions. Compared with small-scale state-owned enterprises, government audits can better promote the performance of large-scale state-owned enterprises. Finally, this paper provides corresponding suggestions on how to conduct government audits in the central and western regions and small-scale state-owned enterprises.

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 strategic effects of non-state shareholders’ governance: based on the perspective of product market performance of state-owned enterprises

ABSTRACT Making state-owned capital and state-owned enterprises stronger, better, and larger is the key driving force for comprehensively building a modern socialist country. This paper studies the impact of non-state shareholders’ governance on the product market performance of state-owned enterprises under the background of mixed ownership reform. Our results show that under the control of equity balances, non-state shareholders appointing directors to participate in governance can optimise the strategic decision-making of state-owned enterprises, promote product and service R&D innovation, and improve the operational efficiency of state-owned enterprises, thereby having a positive impact on the product market performance of state-owned enterprises. And this kind of governance effect is more obvious in state-owned enterprises in local control and competitive industries. Further research finds that the strategic effect of non-state shareholders’ governance not only has long-term sustained characteristics but also has a positive spillover impact on the capital market value and operating performance of state-owned enterprises.

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.

Effect Of Corporate Governance on the Performance of State-Owned Enterprises in Zambia

A state-owned enterprise (SOE) is a legal entity created by a government to engage in commercial activities on behalf of the government. State-owned enterprises are an important part of most economies and make an important contribution to national development processes. In Zambia, state-owned enterprises operate in key sectors of the economy, including agriculture, forestry, energy, financial services, manufacturing, mining, real estate, tourism and ICT. The Auditor General's latest report named 13 state-owned companies as having suffered losses of K1,854,902,817 during the reporting period. The 2022 Auditor General's report also highlighted a number of financial and operational challenges, showing that the performance of state-owned enterprises in Zambia remains unsatisfactory. Therefore, this study was formulated to examine the impact of corporate governance on the performance of SOEs.  A sample of 147 respondents was selected from 33 state-owned enterprises using the Taro Yamane formula, resulting in a 100% response rate. A mixed methods approach was used and the data was analyzed using SPSS from which correlation and summary coefficients were used to measure the relationship between the variables. The correlation coefficient of 0.612 from the SPSS results indicated that there is a strong positive relationship between the structure and appointment of the board, internal controls and the performance of SOEs. Furthermore, the R-squared (determination coefficient) of 0.375 from the SPSS results suggests that the performance of SOEs is improved by good corporate governance, which is 37.5% influenced by the structure and appointment of the board and internal controls and 62.5% can be linked to other factors that were not taken into account, such as micro and macroeconomic factors, lack of employee motivation and poor work culture in state-owned enterprises, among others. Therefore, the board should consist of members who have knowledge of the industry in which the SOE operates, and they should be appointed according to the policies of the respective SOE so that they can provide strict internal control systems that can benefit the better performance of state-owned companies.

The Impact of Green Innovation on Corporate Performance: An Analysis Based on Substantive and Strategic Green Innovations

Green innovation is a new approach to achieving sustainable social development. Examining whether firms can reap the rewards of this costly and risky endeavor is essential to assessing whether they can sustainably adhere to a green strategy. This study was conducted on a sample of Chinese A-share-listed firms from 2010 to 2021 and employed a two-way fixed-effects approach. We found that substantive and strategic green innovations significantly impact firms’ financial and environmental performance. Specifically, substantive green innovation leads to a significant improvement in financial performance, while strategic green innovation weakens financial performance; both types of green innovations lead to a significant improvement in environmental performance, with strategic green innovation being more effective in this regard compared to substantive green innovation. Moreover, our heterogeneity analyses showed that substantive green innovation has a weaker effect on improving financial performance in state-owned enterprises (SOEs) and in firms in regions with higher government environmental concerns; similarly, in SOEs, strategic green innovation has a weaker detrimental effect on financial performance. The findings of this study provide substantial evidence for promoting green innovation transformation and the upgrading of enterprises.

Government Investment and Capital Participation to State-Owned Enterprises in Indonesia to Mitigate The Impact of The COVID-19 Pandemic: Is It Effective?

The National Economic Recovery (PEN) Program is set by the government of Indonesia comprehensively regarding the handling of the devastating impact of COVID-19. The target recipients of the PEN program are classified into two, namely: the first group, State-Owned Enterprises (SOEs), and the second group are non-SOEs business units, where for SOEs this is done in the form of State Capital Participation (PMN) and Government Investment (IP). This research aims to analyze the impact of the PEN program on SOE performance. The analysis results show that the PEN Program has a positive impact on SOEs, as seen from SOEs ROA. The PEN program that has been running has not been able to improve significantly. However, it can be said that the PEN Program has been able to protect the operations of SOE recipients of the PEN program. In addition, the PEN Program has had an impact on achieving positive EAT growth in almost all recipient SOESs. The PEN program for SOEs needs to be re-evaluated, especially for SOEs that had the potential to perform poorly before the pandemic.

Review of Asset Management Practice in Indonesian State-Owned Enterprise

This study examines Indonesian State-Owned Enterprises (SOEs) asset management methods, problems, and financial and operational performance effects. The report synthesizes case studies and academic research on how large organizations manage their huge and diverse asset portfolios and how governance, regulatory frameworks, and human resource practices affect their effectiveness. The research begins with case studies of talent management innovations from big Indonesian SOEs. These cases show how proactive human resource approaches can boost company commitment and reduce turnover, improving asset management efficiency. According to the research, governance and legal frameworks influence asset management techniques. Studies show that corporate governance quality affects SOE operational performance. The paper explores how reforms and legislation affect state asset management, highlighting the major changes in SOE governance and legal frameworks, particularly after economic and political reforms. Asset management difficulties for Indonesian SOEs include managing large and diverse asset portfolios, integrating modern management frameworks, and optimizing state asset revenue. According to the study, comprehensive asset management systems, governance transparency, and professional management can address these difficulties. The research examines how asset management strategies affect Indonesian SOE profitability, corporate governance, and performance measures. Strategic asset management boosts financial performance, especially profitability. SOE profitability is greatly affected by current asset and liability management. The study offers advice to Indonesian SOEs and policymakers. Enhancing financial and operational performance requires comprehensive asset management, governance changes, and strategic innovation. These efforts boost Indonesia's economy, demonstrating the importance of asset management in SOE performance.

A predictive study on the impact of board characteristics on firm performance of Chinese listed companies based on machine learning methods

Purpose This study aims to examine the impact of board characteristics on firm performance while also exploring the influential mechanisms that help Chinese listed companies establish effective boards of directors and strengthen their corporate governance mechanisms. Design/methodology/approach This paper uses machine learning methods to investigate the predictive ability of the board of directors' characteristics on firm performance based on the data from Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges in China during 2008–2021. This study further analyzes board characteristics with relatively strong predictive ability and their predictive models on firm performance. Findings The results show that nonlinear machine learning methods are more effective than traditional linear models in analyzing the impact of board characteristics on Chinese firm performance. Among the series characteristics of the board of directors, the contribution ratio in prediction from directors compensation, director shareholding ratio, the average age of directors and directors' educational level are significant, and these characteristics have a roughly nonlinear correlation to the prediction of firm performance; the improvement of the predictive ability of board characteristics on firm performance in state-owned enterprises in China performs better than that in private enterprises. Practical implications The findings of this study provide valuable suggestions for enriching the theory of board governance, strengthening board construction and optimizing the effectiveness of board governance. Furthermore, these impacts can serve as a valuable reference for board construction and selection, aiding in the rational selection of boards to establish an efficient and high-performing board of directors. Originality/value The study findings unequivocally demonstrate the superiority of nonlinear machine learning approaches over traditional linear models in examining the relationship between board characteristics and firm performance in China. Within the suite of board characteristics, director compensation, shareholding ratio, average age and educational level are particularly noteworthy, consistently demonstrating strong, nonlinear associations with firm performance. Within the suite of board characteristics, director compensation, shareholding ratio, average age and educational level are particularly noteworthy, consistently demonstrating strong, nonlinear associations with firm performance. The study reveals that the predictive performance of board attributes is generally more robust for state-owned enterprises in China in comparison to their counterparts in the private sector.

Pengaruh Implementasi Anggaran Berbasis Kinerja terhadap Peningkatan Kinerja Pegawai Badan Usaha Milik Negara: Studi Kasus Pada Perusahaan Listrik Negara (PLN) Ranting Dolok Sanggul

In this research, the implementation of performance-based budgeting has a positive and significant impact on improving the performance of State-Owned Enterprises (BUMN) employees. The research method used is quantitative with a population of 51 employees and a sample of 25 people selected through purposive sampling. The results of the validity test show that all measuring instrument items on the variables of performance-based budget implementation and improving the performance of BUMN employees are valid. Apart from that, the data in this study is normally distributed and there is no heteroscedasticity in the regression model. The results of the regression coefficient test show that the implementation of performance-based budgeting has a positive effect on improving the performance of BUMN employees.

Research on the Influence of Depth and Breadth of Equity Reform on the Performance of State Owned Enterprises Based on Dynamic Panel Data Model

In order to explore the necessity of mixed ownership reform of state-owned enterprises and clarify the direction of mixed ownership reform of state-owned enterprises in China, this paper uses dynamic panel data model and bootstrap-DEA method to study the impact of “depth” and “breadth” of equity reform of state-owned enterprises in China on the performance of state-owned enterprise. The results show that there is an inverted U-shaped relationship between performance and the level of equitable reform of state-owned enterprises. When the depth of equity reform is 36.6%, the performance of mixed reform enterprises is the best. There is a positive U-shaped relationship between the breadth of equity reform and the performance of state-owned enterprises. When the breadth of equity reform is 12.47%, the performance of mixed reform enterprises is the worst. At the same time, it is found that the average performance of the sample enterprises shows an obvious downward trend, while the performance variance of the sample enterprises shows an obvious upward trend, and this trend has not changed significantly after China launched a new round of state-owned enterprise reform in 2015. According to the above research findings, this paper believes that the intervention of government forces is conducive to promoting the survival of the fittest of state-owned enterprises and the overall optimal allocation of social resources, but we should pay attention to the adoption of market-oriented means and should not directly interfere with the mixed reform of state-owned enterprises. At the same time, the mixed reform of state-owned enterprises in China is either relatively thorough, giving up the dominance of the largest state-owned shareholder, giving other shareholders a greater say, or not to carry out mixed reform, or symbolic mixed reform, otherwise it may aggravate the internal friction of the mixed reform state-owned enterprises, resulting in worse performance.

Nonstate ownership, agency costs and corporate performance: evidence from Chinese state-owned enterprises

PurposeThe primary objective of introducing nonstate ownership into state-owned enterprises (SOEs) is to enhance corporate performance. This study explores how nonstate ownership affects corporate performance, emphasizing agency costs as the primary mechanism.Design/methodology/approachUsing data from 2010 to 2019 for listed SOEs, the authors measure nonstate ownership based on shareholding ratios, control rights and shareholding–control matching. The authors also use fixed-effects and mediation-effects models, with agency costs as the primary mechanism.FindingsIncreased nonstate shareholding ratios, stronger control rights and improved shareholding–control matching promote SOE performance. Nonstate shareholding ratios boost performance through resource effects, while control rights and shareholding–control matching promote performance by mitigating agency costs. A heterogeneity analysis indicates stronger effects in local SOEs and highly marketized regions. Moreover, control rights and shareholding–control matching reinforce the positive impact of shareholding ratios on performance.Originality/valueThe mixed-ownership reform of Chinese SOEs aims to optimize shareholding and control structures between state and nonstate shareholders. Therefore, research on the impact of nonstate shareholding ratios, control rights and shareholding–control matching on corporate performance is highly pertinent. However, existing studies have focused on the effects of single factors on performance, without exploration of the economic implications of shareholding–control matching. This study not only prioritizes the optimization of shareholding and control structures but also underscores the importance of granting nonstate shareholders control rights proportionate to their shareholding, providing critical evidence of the value of improving SOEs' ownership structure.

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.

Green credit, supply chain transparency and corporate ESG performance: evidence from China

Green credit is crucial in advancing various facets of sustainable development in enterprises. This study, utilizing data from Chinese A-share listed manufacturing firms (2011–2020), explores green credit's impact on corporate ESG performance, emphasizing the moderating role of supply chain transparency. The results indicate that green credit positively influences corporate ESG performance, a relationship strengthened by enhanced supply chain transparency. Moreover, green credit significantly boosts ESG performance in state-owned enterprises, while it is positive but not significant for non-state-owned enterprises.

Employee performance of state-owned enterprises in Indonesia: The influence of job characteristics and work environment and employee engagement as an intervening variable

The purpose of this study was to determine whether employee performance is influenced by job characteristics, work environment, and employee engagement. The method used in this research was quantitative, employing a random sampling technique with 211 participants and data collection through a questionnaire. The data analysis technique used was Structural Equation Modeling Partial Least Square (SEM PLS). The results of this study indicate that (1) employee engagement is significantly influenced by job characteristics, (2) employee engagement is significantly influenced by the work environment, (3) employee performance is influenced by job characteristics, (4) employee performance is influenced by the work environment but not significantly, (5) employee performance is significantly influenced by employee engagement, (6) employee performance is significantly influenced by job characteristics through employee engagement, and (7) employee performance is significantly influenced by the work environment through employee engagement. It is expected that good employee performance will increase employee productivity.

Factors affecting performance excellence in Indonesian state-owned enterprises

State-owned enterprises (SOEs) have a strategic position as architects of public services, balancing large private powers, helping to foster small businesses or cooperatives, and a considerable basis of state revenue in numerous forms of taxes and dividends. For Indonesia to compete in the global market, its economic actors (private sector, SOEs, and cooperatives) must amplify their performance. This paper aims to explore the factors affecting performance excellence in Indonesian SOEs, namely business environment and innovation capability through business strategy. Data were obtained from questionnaires distributed to 100 directors/managers representing SOEs in 12 clusters. The partial least squares structural equation modeling (PLS-SEM) procedures were operated to evaluate the path coefficients and identify the pivotal factors of each construct using SmartPLS. The results exhibited that the business environment (β = 0.357, p < 0.05) and innovation capability (β = 0.518, p < 0.05) positively and significantly affected Indonesian SOEs’ business strategy. Meanwhile, business environment (β = 0.263, p < 0.05), innovation capability (β = 0.273, p < 0.05), and business strategy (β = 0.459, p < 0.05) positively and significantly affected SOEs performance excellence. Moreover, business strategies can partially mediate the effect of the business environment (β = 0.164, p < 0.05) and innovation capability (β = 0.238, p < 0.05) on performance excellence. An important implication of this study is that to maintain and improve performance excellence, SOEs must first focus on the capability of innovation to initiate the implementation of business strategies by constantly addressing the business environment.

STATE AND REGIONAL OWNED ENTERPRISES : HEAD TO HEAD FINANCIAL PERFORMANCE COMPARISON AT THE YEARS OF 2017-2021

The performance of State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD) is currently the main hope regarding state revenues and one source of regional income, because BUMN and BUMD are national assets and regional assets which are very important as a source of funds for economic recovery. nationally, especially the Covid-19 pandemic that has just passed. The aim of this research is to determine the performance of BUMN compared to the performance of BUMD. Logically, the very large resources of BUMN compared to BUMD should make BUMN's performance better than BUMD and the results are expected to be very different. The data used is BUMN and BUMD financial performance data for five years, namely the 2017-2021 period. In this research, financial performance assessment uses financial ratio indicators, Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Net Profit (NPM), Return On Assets (ROA) and Return On Equity (ROE) Test the hypothesis using the Kolomogorov-Sminov for normality-test and t-sample independent-test. The results of this research show that the financial performance of BUMN determined by the Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Return On Assets (ROA) and Return On Equity (ROE) is not significantly different from the financial performance of BUMD for the 2017-2021 period.The performance of State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD) is currently the main hope regarding state revenues and one source of regional income, because BUMN and BUMD are national assets and regional assets which are very important as a source of funds for economic recovery. nationally, especially the Covid-19 pandemic that has just passed. The aim of this research is to determine the performance of BUMN compared to the performance of BUMD. Logically, the very large resources of BUMN compared to BUMD should make BUMN's performance better than BUMD and the results are expected to be very different. The data used is BUMN and BUMD financial performance data for five years, namely the 2017-2021 period. In this research, financial performance assessment uses financial ratio indicators, Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Net Profit (NPM), Return On Assets (ROA) and Return On Equity (ROE) Test the hypothesis using the Kolomogorov-Sminov for normality-test and t-sample independent-test. The results of this research show that the financial performance of BUMN determined by the Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Return On Assets (ROA) and Return On Equity (ROE) is not significantly different from the financial performance of BUMD for the 2017-2021 period.

Інформаційне забезпечення планування діяльності державних підприємств в умовах економічної невизначеності

Introduction. The period of economic uncertainty has led to the globalization of fiscal risks, which is marked by a significant decline in budget revenues and the intensity of economic processes in general. The deterioration in the performance of state-owned enterprises played an important role in this. Problem Statement. The need to mitigate fiscal risks arises at the planning stage of business entities' activities, which requires reliable and relevant information support. Purpose. Assessment of the impact of state-owned enterprises on the planned indicators of the state budget and study of the information basis for the formation of a financial plan as a source of data for managing fiscal risks in the context of the COVID-19 pandemic. Methods. General scientific and special methods of cognition are used: analysis, synthesis, grouping, averages and relative values, coefficient analysis, comparison, modeling, generalization. Results. The most vulnerable type of state budget revenues to the effects of the COVID-19 pandemic was the receipt of part of the net profit of state-owned enterprises and dividends on the state share. It is determined that one of the key information bases for managing fiscal risks is the financial plan of state-owned enterprises. It is substantiated that retrospective and prospective information for the formation of the financial plan is produced in the accounting system, which ensures the identification and systematization of data on the types of taxes and the amount of payments incurred. The information is grouped by functional basis, which makes it possible to structure the sources of planning at the national and micro levels and will help to improve the quality of information support for fiscal risk management to offset the negative impact of the COVID-19 pandemic on the performance of budget revenues. Conclusions. The COVID-19 pandemic has had a significant negative impact on the planning process of state-owned enterprises and the stability of the state budget revenues. The key source of information for fiscal risk management at all stages of the budget process is reliable and valid accounting and reporting data and indicators.