Performance Of State-owned Enterprises Research Articles

Performance reporting practices in state-owned enterprises: A systematic literature review

Background: Performance reporting and measurement in state-owned enterprises (SOEs) have been ambiguous for years subject to the nature of the sector. State-owned enterprises are third sector public entities characterised by hybridity of rationales, heterogeneity of goals and multiple stakeholders’ interest. Besides, the diverse institutional frameworks and ownership structure in SOEs make performance reporting and measurements in the sector more complex than in private profit enterprises.Aim: The systematic review of the literature focusses on performance reporting practices in SOEs. It examines SOE performance report users, performance measurement metrics, and the alignment of objectives and performance information.Method: Critical searches of literature in databases such as Scopus or Science Direct, Emerald Insight and JSTOR were made using ’performance reporting’ and/or ’State-owned Enterprises’ as main keywords. More literature was explored in Google Scholar.Results: The concept of performance reporting in SOEs is embedded in broader subjects such as ‘governance in public sectors’, ‘corporate governance in SOEs’ and ‘accountability in public sector’. Performance reports of SOEs in practice focus on the traditional financial performance measurement.Conclusion: There is no straightforward approach in performance reporting of SOEs in the literature. This shows that performance reporting in SOEs is highly slanted, making it difficult to assess efficiency of SOEs.Contribution: The article contributes in unlocking knowledge in highly blurred practices of performance reporting in SOEs.

Green finance and ESG performance: A quasi-natural experiment on the influence of green financing pilot zones

Environmental, Social, and Governance (ESG) performance are major elements of green finance policies. It effectively aligns the financial incentives with the sustainable development goals. This study focuses on how green financing policies affect green innovation and business environmental performance. This study uses the difference-in-differences model to examine how green finance policy affects the ESG performance of enterprises. The results show that companies in economically better-developed pilot zones, state-owned enterprises (SOEs), and those with fewer financial limitations drive more robust ESG performance based on the triple differences technique. The pilot program improves ESG performance despite tightening budgetary restrictions based on mechanism analysis. Thus, green finance policy positively impacts ESG performance, having better performance in state-owned enterprises (SOEs) in China. Policymakers should prioritize targeted green finance policies to boost ESG performance and support maximum environmental impacts.

Coordinated Regional Economic Development: A Study of the Relationship Between Regional Policies and Business Performance

Abstract In the context of the global spread of the Corona Virus Disease 2019, improving enterprise performance, promoting regional economic development, and solving the problem of unbalanced and inadequate regional development are important considerations for regional policy formulation. To understand the relationship between regional policies and corporate performance, this study starts with theories related to regional policies and corporate performance, and proposes two hypotheses. The Western Development, Northeast Revitalization of the Old Industrial Base, and Central Rise Plan are selected as typical representatives of regional policies, and the hypotheses are verified through a double difference model. The results showed that regional policies could improve corporate performance, especially for state-owned enterprises (SOEs). The correlation between the revitalization of the old industrial base in Northeast China and the performance of SOEs was strong, with a correlation coefficient of 0.832. When conducting robustness tests by changing time periods, the correlation values between the performance of SOEs and policies in the three policy implementation areas of revitalizing Northeast China, western development, and central rise were 0.887, 0.764, and 0.652, respectively. Compared to non-SOEs, SOEs had a more significant effect on regional policy improvement. This conclusion was consistent with the empirical results of hypotheses 1 and 2. Based on this foundation, recommendations are offered for the suitability of regional policies to furnish theoretical frameworks for enhancing the regional policy structure and augmenting the precision and inclusivity of regional policy development. The research model is utilized to reveal the important role of regional policies in promoting enterprise performance improvement and promoting regional economic development. It can provide strong evidence support for policy makers. The study offers a scientific theoretical basis and empirical support that assist policymakers in comprehending policy objectives and implementation strategies with greater precision. Therefore, the coordinated advancement of regional economic development is facilitated.

Do error-tolerance and correction mechanisms enhance the performance of state-owned enterprises in China?

This study investigates the impact of error-tolerance and correction mechanisms (ETCM) on the performance of state-owned enterprises (SOEs). We conduct difference-in-differences (DID) estimations and find that the implementation of this policy significantly improves SOEs' performance. Mechanism analysis shows that the ETCM can strengthen the innovation capacity and improve internal governance of SOEs. Heterogeneity analysis shows that our results are more pronounced in SOEs with lower levels of corporate management, lower risk preferences of managers, higher intense external market competition, non-Industrial corporate and eastern regions. We also find that the ETCM improves SOEs' total factor productivity (TFP). Overall, this study provides perspectives and evidence from ETCM for deepening the reform of SOEs.

The Effect of Leverage and Political Connections on the Performance of State-Owned Enterprises

This study aims to examine the influence of leverage and political connections on the performance of state-owned enterprises (SOEs) with good corporate governance (GCG) as a moderating variable. The research uses a quantitative approach, with the population consisting of SOEs listed on the Indonesia Stock Exchange (IDX). The sample was selected using purposive sampling, resulting in 13 companies being chosen as the study's subjects. The results of the study indicate that leverage negatively affects company performance, meaning that the higher a company's debt, the lower its performance. Conversely, political connections have a positive impact on performance, suggesting that political involvement can provide advantages in enhancing a company's performance. Additionally, good corporate governance is found to positively influence company performance, reinforcing the importance of sound governance in supporting operational success. Good corporate governance also acts as a moderating variable. GCG weakens the negative relationship between leverage and company performance, while strengthening the positive impact of political connections on performance. This indicates that strong governance practices can help mitigate the adverse effects of high leverage and maximize the benefits of political connections that the company may have.

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

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

Project Management Information Systems and Performance of Monitoring and Evaluation Systems in The State-Owned Enterprises, Kenya

This study investigated the relationship Project Management Information Systems (PMIS) and the performance of Monitoring and Evaluation (M&E) systems in Kenya's state-owned enterprises (SOEs). The efficient execution of state-owned projects was identified as critical for achieving national development goals; however, challenges such as inadequate integration of PMIS, ineffective M&E systems, inefficient resource deployment, and difficulties in measuring project outcomes often hindered success. A baseline survey indicated that while 40% of SOEs had begun to integrate PMIS into their M&E processes, only 25% reported significant improvements in project tracking. The study aimed to examine the relationship between PMIS utilization and M&E performance, focusing on resource allocation and technological development. A descriptive research design was employed, targeting 263 SOEs, with data collected from 384 respondents, primarily M&E managers. The results demonstrated a robust correlation between resource allocation, technological development, and M&E performance, with Pearson correlation coefficients of 0.653 and 0.763, respectively. Regression analysis revealed that PMIS accounted for 64.9% of performance variance in M&E systems, underscoring its critical role in enhancing project outcomes. The findings indicated that effective resource allocation and technological advancements were essential for improving organizational performance. Recommendations included investing in technology, enhancing resource allocation strategies, and fostering a culture of innovation within SOEs. Additionally, the study highlighted the need for continuous training to equip staff with the skills to leverage technological advancements. Areas for further research were identified, emphasizing the importance of exploring contextual factors affecting performance, the long-term impacts of PMIS implementation, and comparative studies with the private sector to enhance understanding of resource allocation and technological strategies across different organizational contexts. Overall, the research underscored the vital role of integrated PMIS and effective M&E in optimizing the performance of state-owned enterprises in Kenya

Research on the Problems and Countermeasures of Using Management Accounting Methods to Promote the Reform of State-owned Enterprises

This paper deeply discusses how to use the power of management accounting to promote the deepening of the reform of state-owned enterprises, and proposes effective solutions to the existing problems. The reform of state-owned enterprises, as an indispensable part of China's economic map, is of great importance. Management accounting, as a mature and efficient management tool, is gradually becoming an indispensable supporting force in the reform of state-owned enterprises. This paper provides an in-depth analysis of the unique role of management accounting in the reform of state-owned enterprises. We find that by introducing management accounting concepts and methods, we can effectively optimize resource allocation, improve decision-making efficiency, and inject new vitality into the reform of state-owned enterprises. The research results of this paper are of great significance for guiding the reform practice of state-owned enterprises and improving the operating performance of state-owned enterprises. We believe that with the help of management accounting, the reform of state-owned enterprises will be able to take more solid steps and contribute more to the sustainable development of China's economy.

Corrigendum: Corporate governance and performance of state-owned enterprises in a least developed economy

No abstract available.

An Evaluation on The Effectiveness of State-Owned Holding Companies (SOH) In Improving the Performance of State-Owned Enterprises (SOEs): A Case Study of The Mining Sector in Indonesia

Along with global economic growth, the need in improving the performance of State-Owned Enterprises is absolute, especially when dealing with agency problems in mining sector in Indonesia. Based on three research problems: 1) whether or not the mining sector SOE holding policy minimizes agency problems; 2) how the contract between principal and agent minimizes agency problems in mining sector holding; 3) whether or not there is an influence of holding on financial performance, the objectives of this study are, therefore, to evaluate the effectiveness of the holding strategy in minimizing agency problems in SOEs in the mining sector by reviewing the contract between the principal and the agent in minimizing agency problems in the mining sector holding and to obtain empirical evidence comparing the performance of mining sector companies inside and outside the holding, and to find out ways to enhance SOE performance in order to recommend policy formulation to improve transparency, accountability, and efficiency in SOE management. By highlighting the complex relationships within principal-agency structures involving governments, parent companies, and SOEs, the study concludes that better governance to handle problems like political interference, conflicting goals, and lack of transparency paves the way for the concept of the parent company as an intermediary agent to balance conflicting goals and improve governance in SOEs

Research on the Mechanism of Employee Stock Ownership on Corporate Performance under the Background of Mixed Reform

With the deepening of the mixed ownership reform of state-owned enterprises, the employee stock ownership plan that was once suspended has been started again, and the government has clearly proposed employee stock ownership as an important way of mixed ownership reform. Based on the background of the current mixed reform of state-owned enterprises, this paper analyzes the mechanism of employee stock ownership on the performance of state-owned enterprises from four dimensions: corporate governance, corporate operation, financial competitiveness and market effect, further expands the research perspective, and provides references for the implementation of employee stock ownership plans in state-owned enterprises in the future and for relevant departments to analyze the problems in the pilot process of employee stock ownership.

Impact and mechanism analysis of industrial robot imports on export performance of Chinese firms

Digital import trade is of great practical significance for enhancing the export performance of enterprises and preventing external shocks. This paper empirically examines the impact and mechanism of industrial robot imports on Chinese firms’ export performance based on Chinese microenterprise data from 2004 to 2014. The study shows that the application of imported robots can significantly improve firms’ export performance, and this conclusion still holds after a series of robustness tests. Heterogeneity analysis shows that imported robots have a more significant role in boosting the export performance of state-owned enterprises and enterprises in capital- and technology-intensive industries; at the same time, they have a significant effect on the export performance of enterprises in different modes of trade; and they have a significant role in boosting the export performance of enterprises in eastern China compared with those in central and western regions. Mechanism analysis shows that the enhancement of export performance of enterprises by imported robots is mainly realized by promoting enterprise productivity and human capital efficiency. The policy implication of this paper is that in the era of digital trade, Chinese enterprises should fully utilize the import of digital products to enhance their productivity and promote the high-quality development of foreign trade.

Trade networks and corporate ESG performance: Evidence from Chinese resource-based enterprises

Trade network connects enterprises together, while its impact on corporate ESG performance is unknown. Drawing on unbalanced panel data of resource-based enterprises in China from 2009 to 2021, this study decomposes the trade network into purchasing network and sales network based on trade directions, and explores their impact on corporate ESG performance and the mechanisms involved. The findings indicate that: (1) The trade networks exhibit a negative correlation with corporate ESG performance. Meanwhile, purchasing network demonstrates a more pronounced adverse impact on corporate ESG than sales network. After a series of endogeneity tests, the above results still hold. (2) Heterogeneity analysis shows that trade networks have a more significant effect on the ESG performance of state-owned enterprises, mature enterprises and heavily polluting enterprises. And the most pronounced negative effect is observed in the governance (G) component of ESG. (3) Mechanism analysis reveals that trade networks negatively influence corporate ESG performance by impeding the progress of green innovation and internal control. (4) Accelerating digital transformation and intensifying government environmental regulations can mitigate the inhibitory impact of trade networks on corporate ESG performance. This study provides theoretical support and empirical evidence for resource-based enterprises to enhance ESG performance while reinforcing trade linkages.

Evaluasi Kinerja Keuangan PT PLN (Persero) dalam Satu Dekade: Pendekatan Deskriptif dan Naratif

Purpose: This study aimed to evaluate the financial performance of PT PLN (Persero) over the last decade. This study identifies the trends, changes, and factors affecting companies’ financial performance. Research methodology: The methodological approach used in this research was descriptive and narrative. The financial data of PT PLN (Persero) are collected from annual reports, financial statements, and other secondary data sources. Results: This study found that the financial performance of PT PLN (Persero) showed significant variation over the past decade. While there were improvements in some financial ratios, there were also periods of decline caused by internal and external factors, such as regulatory changes, fuel price fluctuations, and government policy changes. These findings indicate the need for more adaptive and innovative management strategies to improve future financial performance. Limitations: This study has several limitations, including the limitation of data covering only one decade and reliance on secondary data that may not accurately reflect the current conditions. Additionally, this research focuses only on financial aspects and does not cover non-financial factors that may affect the performance of PT PLN (Persero). Contribution: This study contributes to the literature on the evaluation of the financial performance of state-owned enterprises (SOEs) in Indonesia, particularly in the energy sector. The findings of this study can be used in the management of PTPLN (Persero) to improve financial and operational strategies.

The role of auditing in corporate governance practice in emerging economies: insights from South African state-owned enterprises (SOEs)

PurposeWithin the context of public sector accountability, the purpose of this paper is to examine South African state-owned enterprises (SOEs) auditing practices and how they have contributed to mitigating prevalent corporate governance issues in South African SOEs.Design/methodology/approachThis paper utilised a thematic content analysis of archival documents relating to South African SOEs. Firstly, to assess the extent to which the auditing dimension of the corporate governance codes, applicable to South African SOEs, conforms with best practices. Secondly, to determine the extent to which the audit practices of all the 21 South African SOEs listed in Schedule 2 of the Public Finance Management Act, have implemented the identified best audit practices.FindingsThe findings suggest that South African SOEs appear to have adopted and implemented best audit practices to enhance the quality of their accountability in relation to their corporate governance practices, as contained in their applicable corporate governance frameworks. However, despite the high levels of conformance, the observation that most South African SOEs continue to fail and require government bailouts, appears to suggest that auditing has no bearing on poor SOE performance, and that other corporate governance factors may be at play.Practical implicationsThe discussion and findings in this paper suggest that the auditing practices of South African SOEs are adequate. However, that SOEs in South Africa continue to be loss-making may imply that this has contributed little to mitigating their corporate governance problems. Thus, policymakers and standard setters, including the Institute of Directors South Africa and relevant oversight bodies should pay attention to better developing means by which to curtail fruitless and wasteful expenditures by South African SOEs through improved corporate governance practices.Social implicationsMost SOEs’ mission statements encourage SOEs to be socially responsible and utilise taxpayers’ monies efficiently and effectively without engaging in fruitless and wasteful expenditure. This study is conceived in this light.Originality/valueTo the best of the author’s knowledge, while acknowledging previous studies, this paper is the first to explore this topic in the context of SOEs and in the context of Africa.

Research on the Impact of Digital Investment on Green Performance of Listed Enterprises

Based on the data of Chinese listed enterprises from 2017 to 2022, this paper examines the impact of digital investment on the green performance of listed enterprises. The study found that digital investment is negatively correlated with the green performance of listed enterprises, which is still valid after the robustness test. According to the heterogeneity analysis, digital investment has a more significant negative effect on the green performance of state-owned enterprises. The research conclusions not only reveal environmental effects of digital investment, but also broaden the research perspective of digital investment and corporate green performance, which has vital enlightening significance for the government to promote the construction of the ecological civilization and enterprises to improve green performance.

Privatization of SOEs and its innovation performance: A reexamination

AbstractThe empirical literature comparing the innovation performance of state‐owned enterprises (SOEs) and private firms in China often yields conflicting results. To shed new light on this debate, we construct an extensive dataset by linking the Annual Survey of Industrial Enterprises (ASIE) dataset with patent quality data. Our analysis focuses on the impact of privatization on the innovation performance of former SOEs. Our findings suggest that the privatization of SOEs generally results in a decrease in innovation performance. This adverse effect is particularly pronounced for firms situated in regions characterized by low levels of market development or those grappling with high financial constraints. This supports the hypothesis that SOEs can serve as a mechanism to address institutional deficiencies in China's context. Our study contributes to a deeper understanding of the relative innovation performance of SOEs and private enterprises and has significant policy implications for ongoing SOE reforms in China and other developing countries.

Change of adaptability to increase employee performance in state-owned enterprises in agriculture

Purpose. The main purpose of this research is to summarise the descriptive analysis of change impact and evaluate the impact of change adaptability on employee performance in state-owned enterprises (SOE) in Indonesian agriculture. Methodology / approach. This study integrates theoretical perspectives on change management, adaptability, organisational learning, and employee performance. The model was tested at Indonesian agricultural state-owned enterprise which consists of 14 companies around Indonesia. The sample comprised 373 employees in middle management. Descriptive analysis and probability sampling were used with a disproportionate stratified random sampling technique, Likert questionnaire scale, and indexing with three box methods and Structural Equation Model in Analysis of the Moment Structure program used for the research model. Results. The findings suggest that learning from past change has a positive and significant effect on employee performance, but the adaptability of change and memories of change have a non-significant effect on employee performance. The models fit the Goodness of Fit Criteria (GFI = 0.934; AGFI = 0.911; CMIN/DF = 1.918; RMSEA = 0.050; TLI = 0.982; CFI = 0.985; NFI = 0.969; p-Bollen-Stine Bootstrap = 0.058); and also based on the descriptive analysis, changes in technology is the most significant changes that affect on company. Originality / scientific novelty. Several studies in the literature include the relationship between change readiness, and adaptability on employee performance, nevertheless, this study further builds and examines the construct of adaptability of change, memories of change, learning from the last change, identifying employee performance scales that should be paid more attention to and the significance among them. Practical value / implications. Based on the study’s findings, the role of learning from past changes in affecting employee performance in Indonesian agricultural state-owned enterprise provides a new and significant insight into the research literature on change adaptability and the challenges facing these companies. It has practical implications for managers and leaders confronting organisational change management in Indonesia, enhancing employee performance, and realising sustainable agriculture.

Digital Transformation, Absorptive Capacity and Enterprise ESG Performance: A Case Study of Strategic Emerging Industries

Digital transformation provides new drivers for economic performance growth in enterprises, but can it further improve ESG performance and support sustainable development? Based on the perspective of resources and capabilities, this article uses the relevant data of 1588 listed companies in strategic emerging industries from 2011 to 2021 to study the impact of digital transformation on enterprise ESG performance examines the intermediary role of absorptive capacity and the moderating role of regional digitalization level, and further analyzes the heterogeneity of property rights and industrial nature. The research results indicate that: firstly, digital transformation of enterprises can positively promote the improvement of ESG performance; secondly, absorptive capacity serves as a conduit through which digital transformation influences a company’s ESG performance; thirdly, the regional digitalization level positively moderates the promotion effect of digital transformation on enterprise ESG performance; fourthly, the impact of digital transformation on ESG performance of enterprises is significantly differentiated in the nature of enterprise property rights and industrial nature, and the ESG performance of state-owned enterprises and high-end equipment manufacturing enterprises is more sensitive to digital transformation. The research conclusion is based on a digital perspective, providing relevant insights for improving the ESG performance of strategic emerging industry enterprises and expanding their ESG development paths.

Board demographic characteristics and governance practices of SOEs in Ghana

Across the globe and particularly in the developing country settings, there has been an upsurge of interests from businesses, academics and policy-makers alike in understanding the relationship between corporate board characteristics and governance practices of State-Owned Enterprises (SOEs). This understanding especially in post-pandemic era would aid in formulating best policies for optimal performance of the SOEs. The aim of this study was to investigate the influence of board characteristics on corporate governance practices in SOEs in Ghana. Utilizing a structured questionnaire, data was collected from employees across various SOEs and analysed through Smart-PLS structural equation modelling. The findings indicate that board demographic characteristics have a significantly positive impact on governance practices, underscoring the importance of diversity in board composition. This outcome highlights the need for SOE policymakers to prioritize board diversity to enhance governance efficacy. This research enriches the literature on corporate governance in the developing country context and has practical implications for enhancing SOE management and performance. It also provides a foundation for future research to explore the dynamics of board characteristics in different contexts.