State-owned Companies Research Articles

Unveiling Intangible Assets: Exploring Voluntary Disclosure and Its Interaction with Accounting Conservatism and Analyst Attention on Financing Constraints

This paper examines the relationship between the voluntary disclosure of intangible assets and financing constraints using a sample of 2850 listed companies from 2017 to 2021. Additionally, we examine the moderating effects of prudence in accounting and the attention given to the disclosures by analysts from both an internal and an external perspective. The results show that voluntarily disclosing intangible assets helps to alleviate a firm’s financing constraints, with more significant effects observed in state-owned enterprises and companies listed on the Growth Enterprise Market index than for private enterprises and those listed on the main board of the Chinese capital market. Further, conservatism in accounting and attention given by financial analysts both positively moderate this relationship. The theoretical and empirical insights provided by this study should help listed companies in China to enhance the quality of their voluntary intangible asset disclosures, while also helping to mitigate financing constraints.

Technology shock of ChatGPT, social attention and firm value: Evidence from China

The release of ChatGPT has attracted widespread attention and triggered fluctuations in the capital market. This study employs difference-in-differences (DID) and event study (ES) to investigate the effects of ChatGPT's release on the cumulative abnormal return (CAR) of listed companies in China. The results reveal that a series of ChatGPT launch events, including GPT-3.5 and GPT-4, have a significantly positive impact on the firm value of the companies focused on ChatGPT, with dynamic effects. In the initial two months after the release of ChatGPT, the Chinese stock market exhibited an undervaluation of GPT-focused companies, indicating information asymmetry and competitive substitution effect. With the widespread promotion of generative AI, social recognition of ChatGPT's potential value increased. This study verifies the moderation effect of social attention in strengthening ChatGPT's impact, demonstrating that a higher search index for ChatGPT enhances stock returns for GPT-focused companies. Heterogeneity tests reveal that the impact of ChatGPT is significantly positive for large or non-state-owned companies, while small or state-owned companies show no significant effect. From the perspective of labor structure, companies dominated by technical and production personnel experience positive effects, whereas those dominated by sales personnel do not. In the eastern regions with more favorable digital economic innovation environments, companies experience a notably positive impact. This paper provides a theoretical explanation and empirical evidence for the microeconomic impact of generative AI in the Chinese context, offering valuable insights for both government and firms.

Pengaruh Solvabilitas dan Profitabilitas terhadap Audit Delay pada Perusahaan BUMN Periode 2019-2023

This quantitative research aims to determine the factors that influence audit delay, namely solvency and profitability in BUMN listed on the Indonesia Stock Exchange (BEI) during the 2019-2023 period with a population of 55 observations. Meanwhile, the sample that met the criteria was 24 observations. The data collection technique was carried out using secondary data from annual reports of state-owned companies during the observation period. The research instrument uses debt to asset ratio (DAR) as a proxy for solvency and return on assets (RoA) as a proxy for profitability, and audit delay data. Data analysis was carried out using multiple linear regression. The results of this research reveal that simultaneously there is a significant influence between the solvency and profitability ratios on audit delay in state-owned companies in Indonesia during the 2019-2023 period. However, partially there is a significant treatment in the opposite direction of the two ratios; The solvency ratio has a negative effect, while the profitability ratio has a positive effect on audit delay.

Pengaruh Rasio Profitabilitas dan Leverage terhadap Harga Saham pada perusahaan BUMN Periode 2019-2023

This research was designed as exploratory quantitative research which aims to determine the effect of profitability and leverage ratios on stock prices. The data used comes from the financial reports of state-owned companies listed on the Indonesian Stock Exchange during the 2019-2023 period, with a sample size of 30 observations. Data analysis used multiple linear regression analysis techniques with the help of SPSS software. The research results show that simultaneously and partially there is a significant and positive influence between profitability and leverage ratios on share prices in state-owned companies on the Indonesia Stock Exchange for the 2019-2023 period.

Pengaruh Ukuran Perusahaan dan Leverage terhadap Profitabilitas pada Perusahaan BUMN di Bursa Efek Indonesia (BEI) Periode 2019-2023

The aim of this research is to determine the effect of company size and leverage on profitability in state-owned companies on the Indonesia Stock Exchange for the 2019-2023 period. The research method used is a quantitative research method. The research results show that simultaneously and partially company size and leverage have a significant effect on the profitability of state-owned companies on the Indonesia Stock Exchange for the 2019-2023 period.

The Influence of Financial Distress, Leverage, and Free Cash Flow on Earnings Management

This study aims to determine the effect of financial distress, leverage, and free cash flow on earnings management in non-bank state-owned companies listed on the Indonesia Stock Exchange (IDX) in 2020-2023. The population in this study were non-bank state-owned companies listed on the Indonesia Stock Exchange in 2020-2023. The sampling method used was the purposive sampling method, obtaining a sample of 18 companies with 4 years of observation. The independent variables in this study are financial distress, leverage, and free cash flow and the dependent variable in this study is earnings management. The data collection method uses secondary data taken from the annual financial reports from the official IDX website www.idx.co.id. This study uses a quantitative approach, and the data analysis method used is statistical analysis and multiple linear regressions using the SPSS computer program. The results of the study indicate that earnings management is influenced by financial distress, leverage, and free cash flow simultaneously. The results of the study indicate that financial distress does not have a significant effect on earnings management, leverage does not have a significant effect on earnings management, and free cash flow has a significant effect on earnings management.

Case Study of a State-Owned Company: How does Centralized Procurement affect Operational Risk?

This study aims to understand that the restructuring of the BUMN has a significant impact on the operational activities of the NUMN, along with its risks. The researchers used data saving from the procurement centralization process as an indication of the company's operational activities before and after restructuring. While variabel current risk exposure to indicate the conditions of the company's operational risk. Procurement centralization mechanisms tend to change before and after restructuring. So it gives the contractor his own sentiment about the operational risks and obstacles in the process. The data used refers to the company's monitoring report. Modeling between saving and current risk exposure uses double regression analysis. The results also indicate that changes in procurement centralization mechanisms have a significant impact on the company's operational risk. So in order to meet risk mitigation, the company should specifically regulate the mechanism of centralization of procurement between business groups.

Rebooting State-Owned Companies in South Africa: Exploring the Viability of Singapore's State Holding Company (Temasek) Model of Ownership and Control

Rebooting State-Owned Companies in South Africa: Exploring the Viability of Singapore's State Holding Company (Temasek) Model of Ownership and Control

Legitimation strategies in emerging ecosystems: The case of advanced air mobility in Hamburg

This study provides insights into the legitimation process of emerging ecosystems and strengthens the conceptual link between entrepreneurial ecosystems and economic geography. It examines existing theoretical frameworks on legitimation strategies in emerging entrepreneurial ecosystems by inquiring into advanced air mobility (AAM), an area in which innovation faces exceptionally high legitimation challenges. The initial integration of drones for logistics and air taxis for passenger transport is surrounded by ambiguous future visions that range from high expectations to concerns about developing a mobility form that is neither sustainable nor socially acceptable and affordable. Empirically, this article offers an analytical understanding of the collective legitimation strategies within the emerging AAM ecosystem in Hamburg, Germany. For this, we used multiple qualitative methods and data sources: (1) a contextualizing network analysis, (2) semi-structured interviews with 22 representatives of tech and policy development, and (3) participatory observation from applied research projects. Based on the empirical material, we find that the current conceptual debate underestimates the public sector's role in ecosystem emergence and legitimation. As AAM depends on fundamental regulatory change, authorities and state-owned companies in the aviation sector have a decisive influence on the emergence of the ecosystem. Furthermore, our findings highlight how global discourses shape local practices and expectations. By combining cross-sectoral knowledge, entrepreneurs and policymakers aim to identify feasible use cases for their place-specific context. Nevertheless, the lack of a collective identity within the ecosystem, which comes largely from the uncertainties of AAM, poses numerous challenges for ecosystem participants addressing their liability of newness.

PENINGKATAN DAYA SAING KELOMPOK TANI MELALUI PEMANFAATAN TEKNOLOGI PERTANIAN

Indonesia is known as an agricultural region with a wide variety of agricultural and plantation commodities. Plantation commodities such as coffee plants are one of the superior products produced by farmers in Indonesia. Coffee plants grow in mountainous areas with relatively cold weather temperatures. Geographically, natural conditions support coffee plants to grow well even with limited technology. Community service activities aim to increase the competitiveness of coffee farmer groups through the application of technology. The community service activities were carried out in Mekarmanik Village, Cimenyan District, Bandung Regency, West Java Province. Service partner Tiwikrama Mukti Farmer Group is engaged in coffee plantations around Mekarmanik village. Coffee trees in this area are planted intercropped with rubber trees that grow on land owned by the PERHUTANI State-Owned Company. The method of implementing the service activities provides assistance with a set of grass cutting equipment and garden support equipment. This equipment can help farmers clean grass and weeds that often grow around the garden so that the growth of coffee plants can be better. In addition to providing agricultural equipment instruments, the service team provided simulations on the use of tools and counselling to farmer group partners regarding the market potential of coffee commodities. The results of community service activities in farmer groups after carrying out garden maintenance can increase coffee productivity. Coffee farmer groups also have a better understanding of coffee marketing circulation so that farmers obtain more optimal economic returns.

Highlighting the Urgent Need for Reforms in the Face of Financial Failures at State-Owned Enterprises in Iraq

General Background: The financial analysis of companies' reports is critical for assessing their past performance, forecasting future results, and identifying operational strengths and weaknesses. Specific Background: Financial failure, which occurs when a company cannot generate adequate returns to cover costs and capital expenses, poses significant risks to stakeholders. For state-owned companies, the implications of financial failure are especially profound, given their integral role in national economies, such as Iraq's. Knowledge Gap: There is limited understanding of the extent to which state-owned companies in Iraq utilize financial analysis to predict financial failure, particularly in the context of economic transitions and privatization pressures. Aims: This study aims to evaluate the dependence of Iraqi state-owned companies on financial analysis as a predictive tool for financial distress and to identify the key factors contributing to their financial failures. Results: The research reveals that 42% of the companies examined have experienced financial failure, as measured by the Argenti index. Contributing factors include employment challenges, insufficient financing, and the transition from a socialist to a capitalist economy, which has left companies vulnerable to privatization. Novelty: The study provides novel insights into how economic transition impacts the financial stability of state-owned companies, highlighting the practical application of the Argenti index in diagnosing financial weaknesses. Implications: The findings underscore the urgent need to support state-owned enterprises by revitalizing the industrial sector, improving administrative efficiency, and adopting more systematic financial analysis tools. Additionally, the research recommends creating an accessible information center for investors and creditors, which would enhance transparency and support decision-making. This approach could help mitigate financial distress and attract new investment, ultimately contributing to Iraq’s economic recovery. Highlights: Financial analysis helps predict failures in state-owned companies. 42% of companies fail, based on the Argenti index. Privatization and economic shifts increase financial risk. Keywords: Financial analysis, Argenti index, state-owned companies, financial failure, privatization

Navigating complex riskscapes: the Koudiet Eddraouch GIS substation project in Sub-Saharan Africa

Learning outcomes Risk identification and qualitative assessment are the learning outcomes. Case overview/synopsis The Bharat Bijlee Construction Limited (BBCL) was one of the largest construction companies operating in the power sector in India. After successfully completing a few projects in the Middle East, BBCL decided to expand its presence into African region. The BBCL was awarded a $85m contract for three sub-station projects to modernise Algeria’s power grid system by the “Shariket Karhaba Koudiet Eddraouch Spa”, a state-owned company in charge of power generation, transmission and distribution in Algeria. The project, which is the first of BBCL in Saharan region in Algeria’s, presents many unique situations that company had never encountered before, including sand dunes, severe weather, remote locations, supply chain & logistics, strict contractual deadlines and a high level of construction risk. The project manager for BBCL was sceptic about how well his company would perform under the present project circumstances. How could he better align himself with the client, the various on-site local contractors and the numerous suppliers spread around the world? The case emphasises the identification of various project risks that the project manager might encounter in the project. What do the PESTLE and ASCE frameworks for risk identification each represent, and how are they helpful for the project team in understanding various risks? How should the project’s qualitative risk assessment be conducted? And how can a heat map be a better tool for comprehending the criticality of each risk in the project? Complexity academic level Undergraduate and post graduate courses in project management, civil engineering and architecture domain. Supplementary material Teaching notes are available for educators only. Subject code CSS 2: Built Environment.

How to resist the Wall Street Consensus: the maneuverability of a Vietnamese green state within international financial subordination

Between 2017 and 2021, Vietnam saw the fastest annual proportional increase in renewables ever seen across the world. This was financially supported by the state-owned energy company, Vietnam Electric (EVN), with debt and equity from domestic and Asian regional sources. Vietnam’s experience contributes to an emerging research agenda at the intersection of the ‘green state’ and ‘international financial subordination’: It questions the Wall Street Consensus’s concern about international finance limiting host countries’ policy maneuverability. Drawing on primary data from 33 interviews, I analyze Vietnam’s experience through the case of EVN. I find that within its international financial constraints, Vietnam resisted the Wall Street Consensus. Instead, Vietnam used feed-in-tariffs as a less restrictive de-risking tool to attract domestic and regional financiers who assessed project risks differently from their Western counterparts. I show how the Vietnamese state did this by using EVN as a tool for market-creation through mission-driven and state-owned enterprise (SOE)-orchestrated de-risking – without resorting to the debilitating guarantees entailed by the Wall Street Consensus. Extrapolating from the Vietnamese case, I argue that Global South countries may be able to resist the Wall Street Consensus and maintain sufficient maneuverability for a green state approach despite the limitations imposed by international financial subordination.

On the creation of state-owned companies in the field of food retail: the experience of Russia and foreign countries

With regard to the discussions circulating among practitioners, retailers and the scientific community on the idea of launching a new state-owned retail chain in Russia, the article analyzes approaches to the legal framework of state-owned retail chains in Brazil, North Korea and China, which adhere to diametrically opposite arguments regarding their activities, which, of course, is useful for the Russian scientific and practical community to know. The author comes to the conclusion that the idea of state-owned retail chains is discredited as having tendencies towards bureaucratization, corruption, the formation of an incorrect distribution of national wealth, poor organization of their activities, rooted not in the phenomenon itself, but in the minds of the people who lead them into life, many of whom are greedy and always look for and often find loopholes in the laws. Thus, further development of existing digital mechanisms in the form of assessment systems based on econometric approaches as Computable General Equilibrium (CGE) will solve this problem.

Revisiting the Corporate Governance–Firm Performance Nexus in Vietnam: Does Capital Structure Really Matter?

In this article, we investigate whether the capital structure moderates the corporate governance–firm performance nexus of Vietnamese firms. This study uses data from state-owned joint-stock companies to test the proposed hypotheses in two phases. In the first phase, we adopted and adapted the corporate governance quality (CGQ) index for the Association of Southeast Asian Nations (ASEAN) nations to design a questionnaire to evaluate the CGQ of state-owned joint-stock companies. In the second phase, we collected information from the company’s reports to assess CGQ, cross-check the data and finalise our evaluation. Then regression models were run to test two proposed hypotheses. Empirical findings show that CGQ exerts a positive impact on Vietnamese state-owned joint-stock companies’ performance. Moreover, our result confirms that firms’ capital structure moderates the CGQ–firm performance nexus. Our study implies that the government should promulgate legal frameworks and policies to establish superior legal infrastructure to build trust for investors and improve CGQ in state-owned enterprises. JEL Classification: M10, M12, M48, N40

The Impact of Employee Stock Ownership Plans on Capital Structure Decisions: Evidence from China

The determination of the capital structure is a critical component of a company’s financial decision-making process. The question of how to optimize a firm’s capital structure to increase its value has been a significant topic of interest within the financial community. The employee stock ownership plan (ESOP) has developed rapidly in China’s capital market over the past decade, providing a suitable context for studying the impact of employee equity incentives on capital structure decisions. This paper employs cross-sectional ordinary least squares regression models and unbalanced panel fixed effect models to investigate the impact of employee stock ownership plans (ESOPs) on firms’ capital structure decisions. The analysis is conducted on a sample of Chinese A-share listed companies on the Shanghai and Shenzhen Stock Exchanges. The research considers both static capital structure choice and dynamic capital structure adjustment. We find that the implementation of an ESOP reduces the level of corporate debt and accelerates the dynamic adjustment of capital structure, suggesting that employee equity incentives play a role in optimizing firms’ capital structure decisions. We also find that the impact of ESOPs on the dynamic adjustment of capital structure is asymmetric. Specifically, the implementation of ESOPs markedly accelerates the downward adjustment of capital structure, yet has no impact on the upward adjustment of capital structure. Further analysis demonstrates that the impact of ESOPs on capital structure decisions is contingent upon the macroeconomic environment, industry characteristics, corporate governance, and ESOP contract designs. First, the optimization of ESOPs on capital structure decisions is more pronounced in an economic boom environment, in a poor market climate, or in competitive industries. Second, the reduction effect of ESOPs on corporate debt is more pronounced in non-state-owned companies, high-tech companies and those with lower ownership concentration. In contrast, the acceleration effect of ESOPs on capital structure adjustment is more pronounced in state-owned companies, non-high-tech companies and those with higher ownership concentration. Ultimately, ESOPs financed by loans from a firm’s major shareholders—or with a longer lock-up period, smaller shareholding size or executive subscription ratio—demonstrate a more pronounced optimization effect on capital structure decisions. This paper not only contributes to the existing literature on the relationship between equity incentives and capital structure decisions, but also provides guidance for listed companies on the reasonable design of their ESOPs and the optimization of their capital structure decisions.

The impact of big fund on the operational efficiency of semiconductor companies: Corporate social responsibility as a non-economic output

This study contributes to research on the total factor operational efficiency of the semiconductor company considering corporate social responsibility (CSR) by proposing a novel integer-valued nonparametric frontier method. This method adopts an endogenous directional distance function, which first selects the benchmark and then endogenously determines the directional vector. Avoiding the issue of non-integer slack adjustment increases the convenience of formulating incentive plans and calculating efficiency. We apply this method to the input–output data of 185 listed Chinese semiconductor companies from 2010 to 2022, considering integer-valued CSR as non-economic output. Global Malmquist productivity index analysis shows that the average total factor operational efficiency of companies that received investment from the National Integrated Circuit Industry Investment Fund (Big Fund) increased by 6.9%. Using the econometric technique, we verify that the total factor operational efficiency of semiconductor companies receiving Big Fund investment increased by 0.084 compared to those without Big Fund investment. Heterogeneity analysis showed that the effect of Big Fund was more significant in improving the total factor operational efficiency of state-owned, new, and non-integrated circuit semiconductor companies, implying the necessity of purposeful investment policies for the Big Fund.

Financial performance of Polish energy companies in the pre-COVID-19 pandemic decade

The energy sector plays a crucial role for the socio-economic development all over the world. The aim of this study is to synthetically assess the financial efficiency of public energy companies (in this study represented mostly by state-owned companies or their subsidiaries) and compare them with other non-financial public companies (usually private) in the relatively stable decade of 2010–2019 which preceded the COVID-19 pandemic. Our analysis focused on nine energy companies in Poland listed continuously throughout the study period whose complete financial data was available in the Notoria Serwis database. The annual financial performance of each of them was measured by a custom synthetic vector measure of financial efficiency, constructed using 14 financial ratios describing liquidity, leverage, efficiency, profitability and market values as discriminant variables. The results demonstrate that energy companies in Poland do not belong to the cluster of the most financially efficient companies in terms of the applied vector measures. The performance of Lotos and Kogeneracja was improving in the analysed 10-year period, whereas in the case of Tauron, Enea and PGE, it was gradually deteriorating.

The impact of ESG rating changes on fund shareholding

This study examines the impact of environmental, social and governance (ESG) rating changes on fund shareholding based on rating data from five agencies. Using a sample of Shanghai and Shenzhen A-share listed companies in China spanning from 2019 to 2021, we find robust evidence that the mean value of ESG ratings by agencies positively impact the number of fund holdings, while the standard deviation of ESG ratings by agencies have no impact on the number of fund holdings. Additionally, the mean value of ESG ratings by agencies have a greater impact on the number of fund holdings among state-owned and industrial companies, and the mean value of ESG ratings by agencies has a larger impact on the number of fund holdings in a one-year window than in a six-month window. Moreover, we find that the mean value of ESG ratings by agencies negatively impact the stock price volatility. The results show that ESG rating changes play a positive role in the decision-making of fund shareholding and in promoting the sustainable development of firms.

A Study on Disclosure Status and Future Improvement Directions of Corporate Governance Reports of State-owned Companies Listed on Korea Exchange

A Study on Disclosure Status and Future Improvement Directions of Corporate Governance Reports of State-owned Companies Listed on Korea Exchange