State-owned Companies Research Articles

Can the improvement of the social credit environment enhance corporate ESG scores?

The ESG scores of corporations is a crucial manifestation of their long-term strategic goals, attracting significant attention from society. The impact and underlying mechanisms of the enhancement of the social credit atmosphere on the ESG performance of corporations remain unclear. This study utilizes a sample of Chinese A-share listed companies from 2010 to 2020, employing the Difference-in-Differences (DID) methodology to investigate the relationship of the establishment of the social credit system on company ESG scores. This study reveals that the establishment of the social credit system significantly advances corporate ESG scores. Heterogeneity results indicate that the positive effect is more pronounced in state-owned enterprises or companies having substantial institutional shareholding. Furthermore, the implementation of the social credit system amplifies corporate ESG scores through three key mechanisms: fostering green technology innovation, cultivating ethical and moral corporate cultures, and optimizing the overall business environment. This paper enriches the informal institutional researches about the driving factors of corporate ESG scores, providing valuable insights for policymakers and corporate decision-makers.

LEGAL POSSIBILITIES FOR CREATING A SINGLE OPERATOR FOR THE TRANSPORTATION OF CONTAINERS BY RUSSIAN COMPANIES ALONG THE NORTHERN SEA ROUTE

Purpose of the research. This article discusses current issues of organizing the transportation of container cargo by a Russian operating company along the Northern Sea Route. The advantages of using the Northern Sea Route as an international transport and logistics corridor have been identified. The problems of organizing and implementing the transportation of containers along the Northern Sea Route have been identified. A scheme for legal regulation of the activities of a Russian operator for the transportation of containers along the Northern Sea Route has been developed. Results. It has been established that in the Russian Federation there is a necessary system of legal regulation of the functioning of the operator for the transportation of containers along the Northern Sea Route, which makes it possible to create a state-owned Arctic Container Shipping Company on the basis of the Rosatom, which will be a national operator for the transportation of containers and will be able to most successfully and efficiently establish a Unified a system for transporting container cargo along the Northern Sea Route.

Effect of Production Flexibility on Performance of State-Owned Sugar Companies in Western Region, Kenya By IJISRT

The underperformance of the Kenyan sugar sector is a major issue that is affecting the ability of the sector to generate revenues or profits that can be used for supporting economic growth and development. Even though the current sugarcane cover is more than 220,000 ha, productivity has remained low achieving only 55 tonnes/ha. Meanwhile, production costs rose sharply reaching US$1007/tonne in 2018. Strategic flexibility in the form of production flexibility has been proposed as a potential solution to help improve the performance and competitiveness of the sugar sector. The aim of this study was to examine the effects of production flexibility on the performance of state-owned sugar companies in Western Kenya. A cross-sectional interview was conducted on a sample of 63 supervisors from the sugar factors selected (Miwani, Mumias, Nzoia, Sony Sugar, Muhoroni and Chemelil Sugar Companies). The regression analysis depicting the relationship between the strategic performance of these organizations and the production flexibility approaches put in place shows that the relationship was significant, F (9, 53) = 27.076, p = 0.000. In this relationship, there was a strong positive relationship between production flexibility and the strategic performance of the organizations in the market. Therefore, the relationship implied that the amount of responsiveness to potential changes in the market through product design changes and the development of new products and new services was pivotal for the strategic performance and productivity of the factories. The other two factors included in the model namely education and years of experience of the employees did not affect the strategic performance of these factories. From the study, it is recommended that there is need for public sugar companies to adjust production capacity, adopt automation and evolving technologies so as to improve on their performance and be able to remain competitive in the market.

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.

How to Increase Employees’ Innovative Behavior? A Study in A State-Owned Electricity Company

Objective: This research investigates the impact of high-performance human resource practices (HPHRPs) on employees’ innovative behavior (EIB) both directly and through the mediating effects of work engagement (WE) and psychological capital (PsyCap) in a state-owned electricity company. Design/Methods/Approach: The data was gathered by conducting a survey questionnaire among 722 employees who work in an electricity company. The collected data was then validated through confirmatory factor analysis. The data was analyzed using the covariance-based Structural Equation Modeling (CB-SEM) technique to test the hypotheses. Findings: The findings indicate that HPHRP has a positive impact on Employee Innovative Behaviour (EIB), both directly and indirectly, through the mediation of Work Engagement (WE) and Psychological Capital (PsyCap) in a state-owned electricity company. Originality/Value: This paper is unique as it provides empirical evidence on how high-performance human resource practices impact employees' innovative behavior directly and with the mediation of work engagement and psychological capital. Practical/Policy implication: HR Managers should focus on employee participation and communication to increase employee work engagement and psychological capital, which will impact innovative behavior among employees. Researchers are encouraged to study employee and organizational performance measures other than Work Engagement and Psychological Capital influenced by high-performance work practices.

Korporativno upravljanje privrednim društvima u vlasništvu države

This paper analyses the rules on corporate governance which are provided for by the Law on Management of State-Owned Companies. At the beginning, the complexity of regulating this issue is indicated as well as the existence of soft law instruments at the international level which influenced the Serbian legislator. Then, the specifics of the new legal regime regarding state-owned company’s bodies are presented in the central part of the paper. First, special rules which refer to the state representatives in the general meeting of shareholders are presented, followed by those which refer to supervisory board members and finally those which refer to the directors. Bearing in mind that the provisions of the Law on Public Enterprises remain relevant for certain companies, the solutions regarding corporate governance provided by that Law are presented as well. At the end of the paper, it is assessed that the legal regime has certainly been approved but certain shortcomings are noted as well.

Does Investor Attention Affect Corporate Greenwashing? Evidence from China

Abstract Enhancing ESG performance has emerged as a crucial strategy for companies to bolster market value and competitiveness. However, this trend has sparked concerns about corporate greenwashing, where companies may selectively disclose ESG-related information to garner short-term benefits. Against this backdrop, using Chinese A-share listed companies from 2010 to 2022, we examine the impact of investor attention on corporate greenwashing. The findings reveal that investor attention significantly curbs corporate greenwashing. Mechanism analysis indicates that investor attention achieves this by alleviating corporate financing constraints and enhancing transparency in corporate information. Furthermore, moderating analysis suggests that enhancing internal controls and increasing environmental subsidies can strengthen the inhibitory effect of investor attention on corporate greenwashing. Finally, heterogeneity analysis demonstrates that the inhibitory effect of investor attention on corporate greenwashing is more pronounced in state-owned enterprises and companies facing high financing constraints. These findings not only contribute to the literature on investor attention but also offer insights for governing corporate greenwashing and advancing the dual-carbon goal. Keywords: Investor attention, Corporate greenwashing, Internal controls, Environmental subsidies, China.

Electricity market price forecasting using ELM and Bootstrap analysis: A case study of the German and Finnish Day-Ahead markets

Electricity market liberalization and the absence of cost-efficient energy storage technologies have led to the transformation of state-owned electricity companies into complex electricity market entities, each having a different time horizon. Deregulation has intensified competition, giving rise to increased uncertainty caused by a multitude of interrelated exogenous factors, resulting in unexpected fluctuations in electricity prices. As a consequence, market participants encounter elevated risks and seek effective mitigation strategies. In this paper, the challenges described in the literature are addressed by studying price distribution histograms in the German and Finnish electricity markets. The objective is to identify normal price intervals that can serve as a foundation for an integrated Day-Ahead price forecasting methodology. A novel approach utilizing the Extreme Learning Machine in combination with Bootstrap intervals is proposed and applied to both markets. The findings demonstrate that Bootstrap intervals effectively capture normal prices, whereas extremely high prices typically align with the upper limits of Bootstrap intervals. Conversely, negative prices tend to fall outside the lower boundaries of the intervals. In order to assess the performance of the proposed methodology, a comparative analysis of its forecasting accuracy against the well-established Generalized AutoRegressive Conditional Heteroskedasticity and AutoRegressive Fractionally Integrated Moving Average models is conducted. In addition, both the computational efficiency and forecasting accuracy of the Extreme Learning Machine in comparison to the Artificial Neural Network are assessed. The results reveal the superior efficiency of the Extreme Learning Machine. The developed forecasting model could potentially assist market participants in making well-informed decisions and executing optimal bidding strategies in response to various scenarios before the Day-Ahead market closes. Notably, the proposed methodology transcends the limitations of fixed price thresholds and effectively addresses market nuances, including the occurrence of negative prices, thus offering a more comprehensive approach for electricity price forecasting.

Financial leverage, state ownership, and firm value: the case of non-financial firms listed in Vietnam

Numerous empirical studies have confirmed the impact of financial leverage on firm value. Nevertheless, these conclusions are inconsistent due to the influence of other factors. In the context of a transition economy such as Vietnam, the state can own a certain percentage of equity capital in companies after equitization. Accordingly, this study aims to evaluate the moderating role of state ownership on the impact of financial leverage on the value of non-financial firms listed in Vietnam. The generalized method of moments was employed to analyze a sample of 481 companies from 2015 to 2021. The findings show that financial leverage has a positive effect on firm value, but this relationship is negatively moderated by state ownership. In addition, financial leverage decreases the firm value of state-owned companies. The paper suggests that the government should focus on assessing financial performance rather than political intervention in using companies’ financial leverage. The results also have implications for accelerating the equitization and divestment of state capital in Vietnamese listed non-financial firms.

Effect of Operation Assessment on Performance of State-Owned Sugar Firms in Kenya

The primary goal of supply chain design is to improve service quality and interaction levels between service providers and customers. The purpose of this study was to examine the effect of operation assessment on the performance of state-owned sugar firms. The research employed a descriptive causal research design to provide a cause-and-effect relationship between the variables. The target population comprised all four operating state-owned sugar companies, namely Chemilil, Muhoroni, Sony, and Nzoia. The composition of the target population consisted of four factory managers, four finance managers, five hundred and twenty-four agricultural extension officers, four human resource managers, one hundred and eighty agricultural services personnel, and four strategy and planning managers, bringing the total target population to 720. The simple stratified purposive sampling technique was applied to obtain a sample of 325 respondents. The researcher used questionnaires for data collection. The analysis of the data was executed using descriptive and inferential statistics. Statistical Package for Social Sciences (SPSS) helped in the analysis. The data was organized and presented in tables. The hypothesis was tested at a 95% confidence level. The results indicated that operation assessment had a positive effect on the performance of selected sugar manufacturing firms in Kenya (t = 6.666, p<0.05). Simple regression helped determine the strength and direction of the relationship between the study variables. The study is of importance to potential investors and managers to help in policy formulation. It will also be of importance to academia, which will beef up the study, particularly in the manufacturing sector, and encourage further investigation in the area of performance based on supply chain design. The study recommended the need for managers to use proper data management approaches and tools, ensure timely access to relevant data, and ensure quality control and assurance of field tasks at all times in order to boost operational efficiency, which leads to the realization of profits in the manufacturing enterprise, especially the sugar manufacturing sector.

ESG Performance and State Ownership in Firm Valuation: Perspectives from Singapore Companies

This study examines how Environmental, Social, and Governance (ESG) performance and state ownership affect firm valuation in Singapore and determines if the effects of ESG on firm valuation are more pronounced in state-owned companies. The data comprises 51 companies listed on the Singapore Stock Exchange with complete ESG and financial information during the five-year period from 2018 to 2022. This study finds that only social practices positively and statistically significantly affect stock prices. Overall ESG values, and the other two dimensions of ESG appear not to be statistically significant. State ownership appears to positively and significantly affect the stock price. The finding suggests that the Singapore government’s substantial influence over corporate practices could accentuate the difference in market perception of ESG efforts between SOEs and companies. The study provides useful and practical implications to policymakers, managers and investors, which affect firm financial and operational performance.

The Effect of Organisational Commitment in Mediating the Relationship between Transformational Leadership and Corporate Competitive Advantage (Study on State-Owned Companies in Indonesia)

This study aims to test and analyze the relationship pattern of transformational leadership, organizational commitment, and corporate competitive advantage. The study was conducted in three Indonesian state-owned enterprises. Data will be collected by distributing a questionnaire to 156 managers. The number of questionnaires that can be used is 120. Data analysis is performed using a HE SEM equipped with AMOS as the data processing application. The results of this study show that: (1) Transformational leadership has a significant positive impact on organizational commitment. (2) Transformational leadership has a significant positive impact on a company's competitive advantage. (3) Organizational efforts have a significant positive impact on a company's competitiveness. (4) Organizational commitment mediates the impact of transformational leadership on a firm's competitive advantage.

Financial Risks, Related Party Transactions and Value of BUMN Companies in Indonesia

Purpose : The research investigates the influence of financial risk on the value of state-owned companies (BUMN) on the Indonesia Stock Exchange with related party transactions as a moderating variable. Method : The population in this research is all state-owned companies listed on the Indonesia Stock Exchange from 2015 to 2022. The sample selection technique uses purposive sampling methods. Data analysis uses regression testing with moderating variables. Findings : The results of this research show that financial risk has a negative effect on the value of state-owned companies in Indonesia. Related party transactions (RPT) have a moderating effect that strengthens the influence of corporate financial risk on the value of BUMN companies. Novelty : The research can prove the role of related party transactions as a moderating variable on the influence of financial risk and the value of BUMN companies. Keywords : Company Value; Financial Risk; Related Party Transactions; Bankruptcy; BUMN

PT PERTAMINA MOR VI’S STRATEGY TO FACE ASPHALT IMPORT PROHIBITION

This research was conducted because of the import prohibition phenomenon by the President of the Republic of Indonesia (RI), Joko Widodo, who stated that asphalt imports would stop in 2024. This phenomenon is fascinating because Indonesia also has a significant demand for asphalt compared to production. This phenomenon also impacts PT Pertamina MOR VI, a state-owned company involved in the asphalt business. This research was conducted to determine the strategy of PT Pertamina Marketing Operation Region (MOR) VI to deal with this phenomenon. Research data was collected through an interview process. The results obtained from the interview show that the first strategy implemented was to increase the limitations of the asphalt refinery at the Pertamina Refinery Unit IV and asphalt production on Buton Island. After overcoming production limitations, PT Pertamina MOR VI focused on setting national product prices based on the Argus Asphalt Index, Opex, and sales margins to compete with global asphalt prices and competitors. The final strategy is how PT Pertamina MOR VI maintains and increases its asphalt marketing market share among agents. These three strategies effectively overcome the effect of asphalt import prohibition in 2024.

Persepsi Nasabah terhadap Aplikasi M-Banking pada Bank Swasta dan Bank Pemerintah

Information and communication technology has revolutionized the banking sector and at its peak during the Covid 19 pandemic, most transactions can be carried out without the need to visit a bank and using mobile banking applications. In Indonesia, there are two banks that are most popular in using m-banking, m-BCA which is managed by a private bank and Livin by Mandiri which is managed by a state-owned company. The aim of this research is to analyze whether there are differences of trust, service quality and perceived risk on customer satisfaction in private and government managed m-Banking. The research method uses a quantitative approach based on data collected through online surveys. There are 180 active m-Banking customers with generation Z and Millennial demographics, students and productive workers. The results show that the factors that influence customer satisfaction in using m-Banking lie in the aspects of service quality and trust, while perceived risk has no effect. Furthermore, differences in the influence of m-banking application service quality determine customer satisfaction. Where, m-BCA customers are relatively more satisfied because the service is in accordance with the promises, transaction speed, security, attractive visual appearance, the application is more responsive and easier than the Livin by Mandiri. For generation Z and millennials, the use of digital banking applications is more influenced by the application's ability to meet transaction needs rather than threat factors such as the speed of computing personal data, cyber-crime and bank system errors.

The Debt Policy and Performance of State-Owned Companies in Indonesia

The Debt Policy and Performance of State-Owned Companies in Indonesia

Analisis Prediksi Praktik Shenanigans Pada Laporan Keuangan

This study aims to show directly how changes in receivables, revenue manipulation and audit committee effectiveness impact operational cash flow in publicly traded state-owned companies listed on the Indonesia Stock Exchange from 2020-2022. To understand the correlation between independent and dependent variables, this research uses quantitative methods. This study uses secondary data in the form of financial reports of publicly traded state-owned companies listed on the IDX in the 2020-2022 period by applying a purposive sampling method. There are 16 companies that can meet the criteria, resulting in a sample size of 46 data. The results of this research prove that the change in receivables variable has a negative and significant effect on operational cash flow. Meanwhile, income manipulation has a positive and significant effect on operational cash flow, and audit committee effectiveness has a positive and significant effect on operational cash flow.

The Impact of Cross-Border Mergers and Acquisitions on Corporate Organisational Resilience: Insights from Dynamic Capability Theory

Utilising panel data from Chinese listed companies between 2008 and 2020, this study employs propensity score matching (PSM) in conjunction with a multi-temporal difference-in-differences (DID) model to examine the causal impacts of cross-border mergers and acquisitions (M&As) on the organisational resilience of enterprises. The findings reveal that while cross-border M&As augment company risk-taking and short-term financial volatility, they also bolster long-term growth, thereby enhancing overall organisational resilience. Cross-border M&As are particularly beneficial for bolstering organisational resilience in state-owned enterprises, non-manufacturing firms, and companies located in the eastern and central regions of China. Moreover, adhering to the principles of corporate social responsibility and possessing substantial market power are found to enhance the impact of cross-border M&As on organisational resilience. The results of this research hold important practical implications for companies seeking to improve organisational resilience and achieve sustainable development.

Migrants in the Old Train Wagons Borderland in Thessaloniki: From Abandonment to Infrastructures of Commοning

The article examines the living and infrastructuring practices of homeless newcomer migrants who find shelter in abandoned train wagons in the west end of Thessaloniki, an area described as “one of the biggest train cemeteries in Europe.” Hundreds of train wagons have been abandoned there over the years, especially after the 2010 financial crisis, when the state-owned railway company was faced with significant financial difficulties. These abandoned wagons form an urban borderland and have provided temporary shelter to numerous homeless and unregistered migrants who stop in Thessaloniki on their route to Central and Northern Europe. Although there is a significant number of studies which discuss the formal infrastructures provided by the state and the NGOs, little attention has been given to the various ways by which homeless and unregistered migrants create and self-manage their own infrastructures to meet their needs. The article aims to shed light on this shortage while examining the (re)production of arrival infrastructures by the migrants themselves. In doing so, the article builds upon the concept of abandonment and attempts to enrich it by drawing on the theories of arrival infrastructures and urban commons. It combines spatial analysis and urban ethnography in order to explore how an urban borderland with abandoned infrastructures, like the train wagons, are re-used and transformed into commoning infrastructures, where newcomers and settled migrants join their forces in their attempt to support each other, meet their needs and of “becoming otherwise.”

Age Discrimination in Chinese Internet Workplace

Due to economic reforms, cultural biases, and rapid technological progress, age discrimination has become widespread in China's online business environment. China is making the transition from central planning to market economy, and measures such as "xiagang" have enabled state-owned companies in China to lay off elderly permanent staff and reduce permanent employee numbers. As the internet industry expands, younger workers who are dynamic are being favored over those perceived to be less adaptable such as older individuals. The "age 35 phenomenon" illustrates how prejudice has been deepened by cultural expectations around gender, family responsibilities, and age. This study investigates all of the elements that contribute to age discrimination and termination trends among Chinese internet businesses. This article covers topics like pertinent policies, shifting labor relations, gender roles and age discrimination - among many others. Research findings indicated that eliminating sociocultural prejudices was just as essential to meeting economic and regulatory challenges, both of which are equally essential. Countermeasures on a national, organizational, and individual level include antidiscrimination legislation, corporate social responsibility programs, retraining programmes, networking events, and skill development activities. Policies and practices that promote inclusiveness have the power to mitigate instability and inequality. This study sheds light on the multiple obstacles elder Chinese internet workers encounter while offering solutions.