Role Of State-owned Enterprises Research Articles

Firm characteristics and corporate governance of state-owned enterprises: An analysis of an emerging market

This paper explores the relationship between firm-level factors and the quality of corporate governance of state-owned enterprises (SOEs) in an emerging economy, namely Vietnam. We employ a self-built corporate governance index (CGI) for SOEs and conduct an empirical analysis of data from 113 listed SOEs on the stock market of Vietnam from 2016-2020 using a fixed effect model (FEM) as suggested by the Hausman test. We find that firm-level characteristics such as firm age and tangibility of assets as well as macroeconomic factors such as the quality of the business climate and economic growth exhibit a statistically significant correlation with the corporate governance quality of SOEs. On the other hand, there is no established statistically significant relationship between other firm characteristics such as firm size, state ownership, financial leverage, growth opportunities and corporate governance. These results for an emerging economy like Vietnam are novel and provide implications for policymakers, regulators, shareholders and other stakeholders on the possibility of enhancing the quality of corporate governance of SOEs in an emerging market, a critical issue given the increasing role of SOEs in economies. Our research can be improved for future research in a couple of aspects. First, addressing the case of companies that do not disclose their governance practices in annual reports would help enhance the information for the corporate governance index. Second, extending the data to compare listed SOEs with other listed firms would provide a more comprehensive analysis.

State-Business Relations and Public-Public Partnerships: China’s State-owned Enterprises in Southeast Asia

China’s hegemonic leader, Xi Jinping, had one core agenda, the Belt & Road Initiative (BRI), which was to be implemented primarily by employing his country’s state-owned enterprises (SOEs). Since 2013, BRI projects have featured extensively in Southeast Asia, a region where countries are led by strongmen leading economies featuring strong state intervention. As the presence of China’s SOEs in Southeast Asia grew, this led to major changes in the nature of state-business relations (SBRs). In this context, where structural power lies with the state, or in this case, the two states of China and the host nation, a fundamental query emerges: who governs in these SBRs? This article analyses this question with a focus on three core themes – China’s mounting presence in Southeast Asia through the BRI, the growing role of SOEs in these economies, and evolving SBRs.

Impact of Enterprise Digital Transformation on the Efficiency of Total Factor Energy Utilization

With the advent of the information age and the rapid progress of technology, it has become inevitable for enterprises to move towards digital transformation. Energy is one of the most vital material bases for national economic and social development, which plays a vital role in national economic growth. How to use energy efficiently has been the core factor to measure the sustainable development potential of an enterprise. Based on the data of listed companies in China, this paper empirically analyzes the impact of enterprise informatization on energy efficiency from different perspectives. Studies have shown that the degree of enterprise informatization has a direct relationship with its energy efficiency. At present, the overall informatization of enterprises in various regions of China is low. However, with the continuous popularization of digital technology and applications, it has a certain inhibitory effect on enterprise energy consumption, with the effect becoming more and more apparent. Especially during the digital transformation, the role of state-owned enterprises in promoting total factor energy consumption has been more significant. Therefore, from the perspective of digital transformation, it is of great significance to study the energy efficiency of state-owned enterprises. This research explores the significant differences in energy efficiency among various industries, and the adoption of digital transformation strategies will help narrow these differences and further promote energy efficiency improvement across the industry. In addition, through the analysis of typical cases, this topic reveals the main problems faced by enterprises in the process of digital transformation and their causes, which puts forward corresponding countermeasures and suggestions. This study can provide a solid theoretical basis for the positive role played by Chinese enterprises and related departments during the digital transformation.

Risk Assessment of Banks and Financial Institutions under COVID-19 Crisis

Systemic risk refers to risks that have a broad and severe impact on the entire financial system or economic system. There are similarities in the definition of systemic risk in China and abroad, which usually refer to threats to the entire financial system or economic system, which can trigger a chain reaction and lead to a systemic collapse. In terms of characteristics and measurements, there may be some differences in views and methods at home and abroad. While foreign countries usually pay more attention to the interconnectedness of financial institutions, market liquidity, macroeconomic factors, etc., China may pay more attention to factors such as the stability of financial markets and the role of state-owned enterprises and governments in the economy. The shortcomings of systemic risk abroad may lie in the fact that the unique circumstances of some characteristic countries or regions are sometimes overlooked, because these factors are not universally applicable on a global scale. Due to its unique environment of large economic size, complex financial system, government intervention, and the influence of state-owned enterprises, the study of systemic risk is particularly important for China. This particular situation may require unique methods and metrics to measure and address risks to ensure the stability and sustainability of China's financial system. It is precisely in view of the lack of foreign research on China's specific context that it is of great significance to study the systemic risk of China's banking industry under China's financial system.

Bulls and bears: inscribing SOEs’ roles into the global climate agenda

Purpose This study aims to explore when and under what conditions state-owned enterprises (SOEs) become important players in orchestrating the global climate action and what their roles are as domestic or international (de)carbonizers. Design/methodology/approach This is a conceptual paper that aims to advance understanding of the role of SOEs in addressing the global climate challenge. The authors build on the institutional theory to capture the importance of home-country climate regulation mechanisms and advance knowledge on the internationalization of SOEs. The authors review the literature on the institutional boundaries that shape the environmental activities of firms at home and abroad and develop the argument on the influence of home country institutions and internationalization on the role of SOEs in the global climate agenda. Findings In this study, the authors elaborate the SOEs’ climate action matrix and offer three propositions based on the fact that SOEs’ environmental strategies are driven by the interests of the state as owner and the scope of SOEs’ internationalization. First, the authors propose that the level of home country’s climate policy ambition explains SOEs’ stance on climate action. Second, scope of internationalization explains SOEs’ stance on climate action. Third, the progressive/increasing involvement of SOEs in climate action enhances the country’s climate stance. Originality/value The authors incorporate the climate argument into international business (IB) studies of SOEs’ internationalization, a novel approach that helps us to advance the knowledge on the complex issue of corporate climate action. The authors argue for a dynamic and reciprocal relationship between home/host countries and SOEs’ climate engagement. In doing this, the authors contribute to the IB research and policy agenda by exploring SOEs’ engagement in advancing the global climate agenda.

Governing the Economy Under Populist Rule: The Cases of Hungary and Poland

ABSTRACT Populism is principally a political phenomenon; yet, the economic implications of populist rule can be substantial, as underlined by the Polish and Hungarian cases. By operationalizing the ideational definition of populism, the article sheds light on the economic consequences of populist governance in three major domains: (1) macroeconomic management, (2) welfare policies, and (3) market regulation. The article demonstrates that while—at least until the outbreak of the COVID-19 pandemic—Hungary and Poland refrained from engaging in irresponsible macroeconomic policies such as the accumulation of public debt or external debt (typical signs of classical “economic populism”), the governments of the two countries embarked on widescale income and wealth redistribution in their respective economies. Nevertheless, these populist governments targeted different groups of people in their redistributive policies: Hungary adopted a largely selective and exclusive social policy targeting the middle class and the well off, while Poland endorsed a more inclusive strategy that benefited the poor as well. Furthermore, the two countries deliberately tilted the playing field toward their protégés: Hungary preferred the preservation of private property; whereas, Poland explicitly increased the share and role of state-owned enterprises in the economy.

Corporate governance for sustainable development in Vietnam: Criteria for SOEs based on MCDM approach.

This research explores the nexus between corporate governance and sustainable development, focusing on State-Owned Enterprises (SOEs) in Vietnam. Recognizing the pivotal role of SOEs in the national economy, this study employs a Multi-Criteria Decision-Making approach (MCDM) to assess and enhance the corporate governance frameworks of these entities. First, the Data Envelopment Analysis (DEA) model is employed to identify the most qualified prospective SOEs firms based on several quantitative criteria. Then, the spherical fuzzy analytic hierarchy process (SF-AHP) model is used to identify priority weights for a given set of qualitative criteria, the Evaluation based on distance from average solution (EDAS) model is implemented to rank enterprises in the SOEs sector. To validate the proposed models, a case study conducted within the Vietnamese electric power industry is utilized. The MCDM methodology integrates diverse factors such as business management, corporate social responsibility, and corporate governance shareholder to construct a comprehensive evaluation framework. By applying this approach, the study aims to identify the key drivers and barriers influencing corporate governance practices within Vietnamese SOEs. The study's findings illustrate the efficacy of the suggested approach in evaluating corporate governance performance, providing valuable insights for policymakers, corporate leaders, and stakeholders involved in shaping the governance landscape of SOEs in Vietnam. By aligning corporate governance with sustainable development principles, the research aims to contribute to the ongoing discourse on responsible business practices, offering practical recommendations to enhance the performance and resilience of SOEs in the pursuit of long-term socio-economic and environmental sustainability.

State ownership in liberal economic governance? De-risking private investment in the electricity sector in Mexico

Abandoning some neoliberal reform tools, but not the goals, liberal policymakers have devised forms of economic governance to support private investment through, paradoxically, the use of state-owned enterprises (SOEs). The article builds on a pragmatist perspective of institutional evolution by describing the syncretism in Mexico's 2013 electricity reform as an exemplary case of structural reforms for de-risking investment through the strategic use of the national SOE. The case shows that the technical and legal segmentation of electricity supply can accommodate different risk distribution arrangements in which state ownership is useful to (1) rein-in the capacity of the dominant company to exercise market power, (2) shoulder the costs of maintaining a subsidised tariff structure for retail consumers, and (3) underwrite the expansion of infrastructure with an uncertain economic future. Structural reforms can use SOEs to relocate private risk in the state's ledger and making state de-risking the most important mechanisms to drive investment, and not market competition. The article argues for the need to develop a sector-specific understanding the role of SOEs within liberal economic programs, but also the need to develop a critical perspective, for instance, through Daniela Gabor's Wall Street Consensus concept, to focus on the historical distributional consequences of these arrangements which can result in the progressive private control over the electricity sector.

Analysis of The Different Role of State-Owned Enterprises (Bumn) and Private-Owned Enterprises (Bums) in the Indonesian Defense Industry Sector

Analysis of The Different Role of State-Owned Enterprises (Bumn) and Private-Owned Enterprises (Bums) in the Indonesian Defense Industry Sector

The SOE Channel of Monetary Policy Transmission: Evidence from China's Economic Stimulus Package

Abstract We examine the state-owned enterprises (SOEs) channel in monetary policy transmission in the context of China's 2008 stimulus package. Using a difference-in-difference approach, we show that the higher SOE share in the cities after the stimulus package, the more bank loans issued in the cities. Furthermore, we find that the role of SOEs in monetary policy transmission is more significant in underdeveloped cities and cities with a high level of government intervention. We adopt propensity score matching difference-in-difference to deal with potential endogeneity problem. The baseline results also survive a series of robustness tests.

Factors affecting the sustainability of telecentres in developing countries

Due to rapid technological changes, governments in developing countries have paid special attention to sustainability. However, understanding insights into the sustainability of telecentres remains an open question. This paper aims to fill this gap. We conducted a case study in Vietnam by using both qualitative and quantitative data. We used the Kumar and Best's (2006) model as our theoretical lens to analyse the sustainability of telecentres in Vietnam. The paper finds that telecentres have shifted their concept to provide a wide range of services, both online and offline. The paper indicates that technological, political, and social sustainability are important for the sustainability of telecentres. The paper recommends that we should take the role of state-owned enterprises and the digital transformation into consideration to sustain telecentres. Furthermore, the paper indicates the mutual relation between political and technical sustainability with social sustainability that has not been yet unveiled in the prior literature.

Enforcing government policies: The role of state-owned enterprise in China’s one child policy

• State-owned enterprises can function as an instrument to enforce government policy. • The one child policy reduced people’s fertility for those working in state-owned than in non-state-owned enterprises. • There is no significant difference in fertility desire between people working in state-owned and non-state-owned enterprises. • The findings are not due to other confounding events such as the opening-up policy. State-owned enterprises can function as an instrument to enforce government policies. Using data from the China General Social Survey, we evaluate the role and effectiveness of state-owned enterprises in enforcing the one child policy and affecting people’s fertility decisions. The estimates show that the one child policy in China significantly reduced people’s fertility for those working in state-owned enterprises than in non-state-owned firms. The findings are not driven by different fertility desires or other confounding events such as the opening-up policy. Such insights have valuable implications for the enforcement of population policies around the globe.

Analysis of Factors Affecting the Quality of Internal Audit

The role of state-owned enterprises (BUMN) to provide contribution to the growth of the economy in which case it will impact on the improvement of the welfare of the people of Indonesia. One of the of the role of internal auditors who are qualified are participating as well as provide assistance to the company to minimize the errors that may occur. This study re-tested the factors - factors that affect the quality of internal audit. The research method uses descriptive verification method with quantitative approach. Samples of research this is Internal Auditors and Committee on Audit in the BUMN office center r in West Java. The type of data used in this study is the primary data source in the questionnaire form. Research is using path analysis to test the construct paths are tested by empirical or not. The data were processed using the Statistical Package for Social Sciences (SPSS) program. Results of the study showed that objectivity is not influenced positive in significant the quality of Internal Audit, Integrity and Competence are partially influenced positive in significant to the quality of Internal Audit. And simultan there is influence positively in significant from Objectivity, Integrity and Competence of the Quality of Internal Audit.

Application of Good Corporate Governance (GCG) in State-Owned Enterprises

The implementation of GCG is important for companies to carry out careful phasing based on an analysis of the situation and condition of the company, and the level of readiness, so that GCG implementation can run smoothly and get support from all elements within the company. As a step to improve performance, efficiency and professionalism, then emerged a principle that is believed to encourage an increase in the performance of the company, this principle is the principle of Good Corporate Governance (GCG). GCG is defined as a system that regulates and controls a company to create value added for all stakeholders, including in its application to State-Owned Enterprises (SOEs). The obstacles that often prevent SOEs from functioning economically are the government itself and the poor quality of human resources and a corporate culture that tends to be KKN. To avoid greater losses, it is necessary to change the management of SOEs. In terms of legal material, legal structure and legal culture as well as problems arising from its implementation by presenting a new SOEs law using the principles of GCG. This study employs normative legal research using qualitative juridical analysis methods. The role of State-Owned Enterprises in the national economy in realizing people's welfare is not optimal. SOEs plays a role in producing the goods and or services needed in order to realize the greatest prosperity of the community.

State-owned enterprises as foreign direct investors: insights from EU countries

ABSTRACT The aim of this paper is to present and discuss the scale of foreign direct investment made by state-owned enterprises (SOEs) registered in EU countries in other EU countries in 2017. We created a comprehensive dataset of all intra-EU SOEs’ FDI, on the basis of micro-level data on foreign affiliates, which had hitherto been missing. The role of SOEs’ FDI in the EU economy is relatively low. However, in terms of the home country, we observe a significant asymmetry. Almost 92% of SOE’s foreign affiliates come from the old-EU members. French SOEs are most engaged in FDI activities within EU countries, followed by Germany and Italy. In post-socialist countries, SOEs still play an important role in the economy; however, their activities are concentrated in domestic markets. SOEs are substantial investors in foreign markets in the energy sector. The most attractive countries for investment by state-owned multinational companies are the United Kingdom, Germany and the Netherlands.

Relationship between the effectiveness of Good Corporate Governance (GCG) policies with the occurrence of corruption cases in the State-Owned Enterprises environment

In the economic system, the role of State-Owned Enterprises is as an implementer of public services, distribution of resources that control the lives of many people, as pioneers/pioneers in the business sector that are not yet desirable by the private sector and as a source of state revenue. This role can be realized if the State-Owned Enterprise in its objectives can implement the principles of Good Corporate Governance (GCG) well. But in reality, it is often difficult to face challenges faced by State-Owned Enterprises managers in implementing good governance. The intervention of State-Owned Enterprises business management with a political-bureaucratic approach that is no different from other government agencies. And at worst there are still a series of corruption cases carried out by the leadership of State-Owned Enterprises to seek personal gain. This is certainly a contradiction with State-Owned Enterprise's governance which is always published. Existing GCG implementation policies are deemed ineffective because they are not adhered to. This illustrates that business governance in ` State-Owned Enterprises itself has not been going well. Improvement in the application of good corporate governance (GCG) must be carried out immediately and the improvement of the GCG ecosystem of the State-Owned Enterprise itself must receive the attention of the government. Synergy is needed with the government's commitment to forcing State-Owned Enterprises to implement GCG in a transparent and accountable manner, with a high level of professionalism and effectiveness.
 Keywords: Good Corporate Governance State-Owned Enterprises Government Implementation

Relationship between the effectiveness of Good Corporate Governance (GCG) policies with the occurrence of corruption cases in the State-Owned Enterprises environment

In the economic system, the role of State-Owned Enterprises is as an implementer of public services, distribution of resources that control the lives of many people, as pioneers/pioneers in the business sector that are not yet desirable by the private sector and as a source of state revenue. This role can be realized if the State-Owned Enterprise in its objectives can implement the principles of Good Corporate Governance (GCG) well. But in reality, it is often difficult to face challenges faced by State-Owned Enterprises managers in implementing good governance. The intervention of State-Owned Enterprises business management with a political-bureaucratic approach that is no different from other government agencies. And at worst there are still a series of corruption cases carried out by the leadership of State-Owned Enterprises to seek personal gain. This is certainly a contradiction with State-Owned Enterprise's governance which is always published. Existing GCG implementation policies are deemed ineffective because they are not adhered to. This illustrates that business governance in ` State-Owned Enterprises itself has not been going well. Improvement in the application of good corporate governance (GCG) must be carried out immediately and the improvement of the GCG ecosystem of the State-Owned Enterprise itself must receive the attention of the government. Synergy is needed with the government's commitment to forcing State-Owned Enterprises to implement GCG in a transparent and accountable manner, with a high level of professionalism and effectiveness.
 Keywords: Good Corporate Governance State-Owned Enterprises Government Implementation

Advancing Direct Corporate Accountability in International Human Rights Law: The Role of State-Owned Enterprises

Advancing Direct Corporate Accountability in International Human Rights Law: The Role of State-Owned Enterprises

Roles of Actors in Palm Oil Value Chain: a Paradox

Process of globalization has added pressure to smallholder palm oil in world palm oil producers countries. The globalization, however, create opportunities for small palm oil holders to benefit from it whenever they are able to collaborate proportionally with other actors. In order to do so, this study is aimed to elaborate the current value chain and typology of smallholders to establish the suitable collaboration schema. The finding showed that although there is imperfect quality of role, the variety of actors involved make smallholders found a better role. The PTPN VIII Kertayaja (State-Owned Enterprises (SOE) should be able to gain benefit and opportunities from suggestion use of the collaboration with other actors within the value chain. However, it is the role of SOE that act as state fiscal-revenue collector as well as maintaining status quo and having coercive power but it makes them complacent it and neglect to achieve sustainability role in empowering farmers. On the other hand, willingness to maximize the benefits created from the transaction has led head of village, private enterprises, collectors, sellers and transporters to find the most innovative way to help the small plantation owner to ease the challenges and maximize their roles in adding value to the chain.

The Belt and Road turns five

China’s Belt and Road Initiative (BRI) is an international trade and development strategy. Launched in 2013, it is one of the ways that China asserts its role in world affairs and captures the opportunities of globalization. The BRI has the potential to enhance development prospects across the world and in China, but that potential might not be realized because the BRI’s objectives are too broad and ill-defined, and its execution is too often non-transparent, lacking in due diligence and uncoordinated. This article documents the background and context of the BRI, recounts what is known about the extent of the initiative and specifies its various motivations. It highlights that the initiative meets very large infrastructure investments gaps, which is welcome and needed, and that China’s goal of forging stronger links with its trading partners around the world are legitimate, so long, of course, as the underlying intent remains peaceful. Though many observers welcome the BRI, many others oppose it for good reasons, while others misunderstand it and oppose it for bad reasons. The paper identifies and discusses concerns about the initiative that relate to its geopolitical objectives, its priorities, its geographic scope, the role of state-owned enterprises, the allocation of resources, issues of transparency and of due diligence. Particularly, it shows that this initiative deals with a vast number of countries that are in very different states of development and that an apparent lack of well-defined priorities is holding the initiative back. The paper also highlights the issue of debt overload which is distressing several BRI countries and discourages further projects. It points briefly to possible improvements that China and the other stakeholders in the BRI can make to get the most out of their investments. The BRI, to be effective, needs to meet the basic conditions of a trade and development strategy, which are clear objectives, adequate resources, selectivity, a workable implementation plan, due diligence and clear communication. Involvement of multilateral lenders could help with this. Finally, China has to improve the evaluation of project’s risks and costs and step up its due diligence approach to demonstrate that it respects the long-term interests of those countries that are at the receiving end of its BRI projects.