State-owned Enterprises Research Articles

Role of Ethical Leadership, Corporate Culture, Employee Empowerment, and Organizational Commitment on Employee Productivity: Case Study of State Owned Enterprise Employee

This study investigates the influence of ethical leadership, corporate culture, employee empowerment, and organizational commitment on employee productivity within a State-Owned Enterprise (SOE). Using a sample of 300 employees, data were analyzed through descriptive statistics, reliability testing, correlation analysis, and regression analysis. The findings indicate that all four factors significantly enhance employee productivity, with organizational commitment having the strongest impact. Ethical leadership was also found to influence productivity indirectly through organizational commitment, while corporate culture moderated the relationship between leadership and productivity. Employee empowerment was shown to further improve productivity by granting greater autonomy and responsibility to employees. These results suggest that SOEs can enhance employee productivity by fostering ethical leadership, a supportive corporate culture, empowering employees, and building organizational commitment. The study provides valuable insights for SOEs aiming to improve performance in a public-sector context.

Unveiling the impact of digital transformation on carbon emissions: evidence from China’s construction enterprises

ABSTRACT This paper examines how digital transformation (DT) impacts carbon emission intensity (CEI) in construction enterprises (CEs) amid global low-carbon development concerns. Using a difference-in-difference method on data from 170 Chinese CEs, the study finds that DT significantly reduces CEI. Labour structure upgrading partially mediates this relationship, while the green innovation and green supply chain optimization do not show mediating impacts. The constraining impact of DT on CEI is significant in state-owned and large enterprises but not in non-state-owned and small ones. These insights help understand DT’s role in promoting environmentally friendly growth in CEs.

Drug Procurement, R&D Models, and Innovation Performance of Pharmaceutical Companies

Under the multi-objective public policy of national centralized banded purchasing of medicines (“Drug Procurement”), winning pharmaceutical companies are faced with the dual dilemma of declining product profits and high investment in innovation. Although the centralized drug procurement policy significantly reduces drug prices and alleviates the burden of patients, the mechanism of its impact on the innovation performance of pharmaceutical companies is still unclear, and an in-depth study of this mechanism can help to comprehensively understand the effect of the implementation of the centralized drug procurement policy. By constructing a multi-period double-difference model to investigate the impact of the drug collection policy on the innovation activities of enterprises, the study finds that the drug collection policy significantly improves the innovation performance of selected enterprises through two paths, namely internal R&D and external cooperation. Heterogeneity analysis shows that the drug collection policy significantly enhances the innovation performance of larger enterprises and pharmaceutical enterprises whose leading products are chemicals, and has a more significant positive effect on the innovation performance of state-owned enterprises compared with that of non-state-owned enterprises. On the basis of empirical analysis, suggestions are made for policy improvement.

Can Low-Carbon Transition Impact the High-Quality Development of the Manufacturing Industry?—Experience Evidence from a Low-Carbon Pilot Policy

Low-carbon transition is a wide-ranging and deep economic and social transformation. Can we enhance high-quality development of the manufacturing industry (HQDM) during the low-carbon transition process? The enactment of the low-carbon city pilot policy (LCCP) is considered a “quasinatural experiment”. This study initially constructs a theoretical model of the impact of the policy on the high-quality development of a company. A staggered DID approach is then employed to evaluate this impact, using microdata from listed manufacturing enterprises from 2003 to 2021, and a variety of robustness tests, such as PSM-DID and the double machine learning method, are also employed. The main results show that the LCCP led to a significant 9.8% increase in the TFP of the manufacturing industry in the pilot regions. Therefore, the LCCP promoted the HQDM. The impact of the policy has demonstrated a year-by-year upward trend. The influence mechanism test demonstrates that the LCCP resulted in a 14.3% improvement in resource allocation within the manufacturing of the pilot regions but led to a 0.3% decrease in technological innovation. In addition, the LCCP has been more effective in promoting the HQDM in western regions, along with in state-owned enterprises and low-technology manufacturing industries. This paper offers valuable insights into the implementation of differentiated low-carbon policies for manufacturing industries in different regions with different characteristics.

Mixed Reform of State-owned Enterprises and High-quality Development of Enterprises

The reform of mixed ownership in SOEs advances their high-quality development through deepened reforms, optimized state economic layouts, and enhanced capital allocation efficiency. Utilizing A-share listed company data from 2008 to 2022, this study employs a two-way fixed effects model for empirical analysis. The findings reveal a notable positive correlation between SOE mixed-ownership reforms and improvements in corporate governance, incentive mechanisms, and constraints. Moreover, the role of party building plays a crucial moderating function in these reforms. This research elucidates the integration of public ownership with the market economy for listed firms, identifies fresh strategies to boost SOE vitality, efficiency, and competitiveness, and supports the establishment of modern enterprise systems. It also offers theoretical underpinning for the transformation, upgrade, and sustainable growth of state-owned enterprises.

Does the Classified Reform of Chinese State-Owned Enterprises Alleviate Environmental, Social and Governance Decoupling?

Accurate disclosure and proactive engagement in ESG practices are essential for achieving high-quality economic development, particularly as China addresses significant challenges during its reform journey. The Classified Reform of State-Owned Enterprises (CRSOE) is a strategic initiative by the Chinese government aimed at fostering this development. Our study leverages the implementation of the CRSOE as an exogenous shock, employing the difference-in-differences approach to assess the policy’s governance impact on ESG decoupling from the perspective of ownership heterogeneity. The policy was found to alleviate ESG decoupling, particularly pronounced among SOEs with special functions. The governance effect is achieved by reducing the aspiration–performance gap. Specifically, the policy effectively narrows the disparity between a company’s actual performance and the expected performance based on the industry average, thereby mitigating ESG decoupling. However, the policy’s impact can be weakened by factors such as political connections among executives and media attention. Furthermore, the CRSOE effectively addresses greenwashing practices within ESG decoupling, with a particularly strong effect on SOEs that fail to disclose ESG information in alignment with Global Reporting Initiative (GRI) standards. These findings highlight the importance of understanding the broader implications and underlying mechanisms of the policy. Therefore, building on the assessment of how the CRSOE policy impacts ESG decoupling, we also examine the mechanisms through which this policy operates and how its effectiveness varies under different conditions of heterogeneity. By extending the application of principal-agent theory and performance feedback theory, our research suggests that policymakers should prioritize market-driven reforms for fully competitive SOEs and promote a stronger emphasis on non-financial goals. Additionally, it is essential to mitigate the undue influence of political promotions on the management of all SOEs.

Analisis Kinerja Keuangan Bank Syariah Indonesia Sebelum dan Sesudah Merger Menggunakan Metode Maqashid Shariah Index dan Profitabilitas

Bank Syariah Indonesia was established on February 1,2021. The establishment of Bank Syariah Indonesia was a combination of 3 (three) BUMN Banks (State Owned Enterprises), namely Bank Syariah Mandiri, BNI Syariah, and BRI Syariah. For this reason, the merger of the three banks aims to realize efforts to build an advanced Islamic bank. On the other hand, the progress of an Islamic banking industry is certainly inseparable from the evaluation of the Islamic bank's financial performance. This aims to determine the financial conditions that occurred during a certain period, in which this information is intended for the government, investors and customers of the Islamic bank. So because of this, the authors are interested in measuring the performance of Indonesian Sharia Banks, which can still be said to be new because it is the result of the merger of the three state-owned banks based on the Maqashid Sharia Index and Profitability concept. This research aims to analyze the performance achievements of Bank Syariah Indonesia before and after the merger using the Maqashid Shariah Index and Profitabilta methods and to compare the two performance achievements. The results of the study found that after the Merger, Indonesian Sharia Banks achieved the highest average MSI Performance ratio (Maqashid Syariah Index) and Profitability Performance ratios compared to before the Merger.

Understanding SOE responses to the energy crisis in Nigeria and South Africa

This aim of this paper is to present an understanding State-Owned Entities (SOE’s) responses to the energy crisis in Nigeria and South Africa. The energy crisis in both Nigeria and South Africa has posed significant challenges, with both countries experiencing severe power shortages that have impacted economic growth and the quality of life. State-Owned Enterprises (SOEs) in the energy sector, such as Nigeria's NESCO and South Africa's Eskom, have traditionally been central to efforts of ensuring energy security. The paper therefore through a qualitative method of research, attempts to reveal the responses of the SOE’s in these states to address the energy crisis. Hence, it concludes that South Africa responded by unbundling Eskom and Nigeria privatising the energy sector. But these mechanisms are yet to solve the energy crisis.

Does green credit policy matter for corporate sustainable innovation? Evidence from China

Green finance is a powerful motivator for promoting sustainable innovation and achieving green development. Under the dual background of building a green finance system and a market-oriented green technology innovation system, this study examines the impact of the Green Credit Guidelines on the sustainable innovation of enterprises both before and after implementation. By analyzing the propensity score matching difference-in-difference (PSM-DiD) analysis of Chinese listed enterprises, we have found that the support of relevant policies actually inhibits sustainable innovation and reduces the number of sustainability-related patents. This effect is more pronounced in green credit-restricted industries, state-owned enterprises (SOEs), and eastern regions. Ultimately, we have discovered that green utility model patents, in contrast to green invention patents, are the primary indicator of the detrimental impact of green credit policy on the performance of sustainable innovation. Overall, our study broadens the understanding of the external impacts of sustainable innovation within enterprises and provides valuable insights for corporate policy makers and management professionals.

Common institutional ownership and executive pay-performance sensitivity: Mediating role of information transparency and fund occupation

Research in corporate governance highlights the development of executive compensation contracts as a crucial strategy for mitigating agency conflicts. This study uses the pay-performance sensitivity (PPS) of executives as a metric to evaluate the effectiveness of compensation agreements, specifically examining the influence of common institutional ownership (CIO) with data from publicly traded companies between 2009 and 2022. The findings reveal the existence of PPS and its amplification through CIO, a conclusion that remains robust after conducting various tests. Moreover, the research identifies two mediating effects: information transparency and fund occupation. The co-governance role of CIO is found to be more pronounced in the eastern region, within state-owned enterprises, and in contexts characterized by higher agency costs and greater equity concentration. These insights deepen our understanding of the governance synergies associated with CIO, offering both theoretical and empirical foundations for the design of executive compensation contracts.

The Influence of Digital Transformation on Chinese Firms' Outward Foreign Direct Investment

This research employs a comprehensive dataset of China's A-share publicly listed companies, spanning the period from 2012 to 2022, to empirically scrutinize the implications of digital transformation on enterprises' endeavors in outward foreign direct investment (OFDI). The results obtained demonstrate a positive and significant stimulus effect of digital transformation on OFDI activities. A deeper analysis of heterogeneity further reveals that, within the context of state-owned enterprises (SOEs), digital transformation acts as an even more potent accelerator of OFDI. Moreover, across all enterprises, digital transformation effectively alleviates financing constraints, thereby creating a more conducive environment for the pursuit of OFDI.

How financial derivatives affect energy firms' ESG

This paper investigates how the usage of financial derivatives affect energy firm's ESG. Using a sample of Chinese listed energy firms, we document a positive relation between the financial derivatives usage and corporate ESG performance, and the results remain robust under a series of robustness and endogeneity tests. Alleviated financial pressure, enhanced information efficiency and increased risk exposure are potential mechanisms through which financial derivative usage promotes ESG performance. Moreover, the influence of financial derivatives exhibits heterogeneity, and the improvement of corporate ESG performance is more pronounced for state-owned enterprises, large firms, firms receive more investor attention, and firms located in the eastern region in China. Our study may shed lights on the impact of financial derivatives usage on energy firm's sustainable development.

ISA 701 links to corporate governance practices of South African state-owned enterprises

ISA 701 links to corporate governance practices of South African state-owned enterprises

Valuation of State-Owned Enterprises in the Process of Privatisation in Ethiopia: Procedures and Methods

Real property valuation is a vital component in the privatization of state-owned enterprises (SOEs). In Ethiopia, real property valuation is a difficult task as there is a lack of skilled manpower in the field, no adequate real estate market, and legal gaps in valuation. In addition literatures are scant about how real property valuation is done. Therefore, this study examines real property valuation procedures and challenges in the process of privatization of state-owned enterprises (SOEs) in Ethiopia. To achieve the objective of the study, qualitative research approach is applied. The target populations of the study were appraisers who participated in the valuation of SOEs. A purposive sampling technique was used to select respondents. Primary data were collected from appraisers using key informant interview (KII). Document review from different secondary sources was employed to triangulate the KIIs. The data were analyzed using thematic grouping and narration. The study found that for profitable enterprises Depreciated Replacement Cost (DRC) and Discounted Cash Flow (DCF) methods have been applied while for loss-making enterprises the DRC method has been used. These methods are selected based on the preceding three years of data. Moreover, these valuation methods are not applied in a proper way and the basis of selecting these methods are unjustifiable. The valuation result of SOEs, do not reported in a standard valuation reports formats. Lack of skilled manpower, inappropriate use of the valuation approaches, inappropriate base for selecting techniques of valuation, and organizational inefficiency are the key problems faced during valuation. To improve the situation market principles should be applied in the valuation of SOEs for privatization purposes in Ethiopia. These can be achieved by introducing strong institutions responsible for valuation regulations at the central level.

The Chinese Model: Analysis of the Investment of Chinese Mining Enterprises in Latin America

Recent years have witnessed China’s increasing presence in Latin American countries, specifically focusing on FDI in the natural resource sector. However, researchers have found that Chinese enterprises invested overseas will likely be involved in conflicts with local stakeholders and have difficulty seeking a social license to operate (SLO). Therefore, it is worth exploring the mechanism of Chinese investments in the Latin American market and the management of corporate social responsibility (CSR) of Chinese enterprises in foreign investment. The main research objectives of the thesis are summarised below. (1) Exploring the mechanism of Chinese enterprises entering Latin America, especially the relationship between Chinese state-owned enterprises (SOEs) and the state government. (2) Analyzing the interactions between Chinese mining SOEs and non-governmental stakeholders in Latin America and the causes of mining conflicts. (3) Describing Chinese enterprises’ management of CSR overseas, especially in seeking the social license to operate (SLO).

Corporate Social Responsibility Implementation by State-Owned Enterprises: Economic Impacts in Makassar, Indonesia

Corporate Social Responsibility Implementation by State-Owned Enterprises: Economic Impacts in Makassar, Indonesia

Strong financial regulation and the intelligent transformation of enterprises

Artificial intelligence, as a strategic technology leading the future, has emerged as a key field where nations worldwide are actively vying for leadership. In 2018, China issued new asset management regulations, which had a significant impact on the intelligent transformation of enterprises. However, there are no scholars to carry out research. In order to fill this gap, this paper is based on the natural experiment of China's the new asset management regulation released in 2018, this paper analyzes the impact of strong financial regulation on enterprise AI. The primary contribution of this paper is the establishment of a new mathematical model for stringent financial supervision and the deduction that new regulations guide funds by targeting shadow banking, curbing corporate financialization, alleviating financing constraints, and optimizing resource allocation, thereby fostering the intelligent transformation of enterprises. Addressed the shortcomings in existing quantitative research. Finally, further analysis reveals that this positive effect is mainly reflected in state-owned enterprises, high-tech enterprises, private financial development degree is higher, and relatively developed eastern regions and large urban agglomeration areas. This study provides micro evidence for the intelligent effect of financial strong regulation, and provides important policy enlightenment for further releasing the dividends of financial regulation system reform and promoting the high-quality development of real economy.

Exploring the effect of transformational leadership and knowledge management in enhancing innovative performance: a mediating role of innovation capability

PurposeIn the highly competitive sector of state-owned enterprises in Indonesia, particularly within the electricity group, innovation is crucial for sustainability and growth. This study investigates the impact of transformational leadership and knowledge management on innovation performance, emphasizing the mediating role of innovation capability.Design/methodology/approachEmploying a quantitative approach, this research focuses on the upper management of 11 companies, gathering data from 196 out of 280 surveyed individuals through structured questionnaires. Structural equation modeling (SEM) was utilized for analysis.FindingsOur analysis reveals a dual role of transformational leadership; while it significantly enhances innovation capability, it unexpectedly detracts from innovation performance. Conversely, knowledge management boosts both innovation capability and performance. Significantly, innovation capability serves as a crucial mediator, amplifying the effects of both transformational leadership and knowledge management on innovation performance. These results highlight complex interdependencies within organizational leadership and knowledge frameworks.Practical implicationsThese findings can guide organizations in refining leadership and knowledge management strategies to bolster innovation. By enhancing transformational leadership skills, implementing robust knowledge management systems and fostering innovation capabilities, companies can better navigate the complexities of the modern market. The adaptation of these strategies should consider specific organizational cultures and market dynamics to optimize performance.Originality/valueThis research extends the resource-based view (RBV) by detailing the interplay between key organizational variables, offering fresh insights into their collective impact on innovation within the context of state-owned enterprises in Indonesia.

The impact of supply chain digitization and logistics efficiency on the competitiveness of industrial enterprises

This paper selects data from Chinese listed companies in the industrial sector from 2011 to 2022 as samples to explore the impact of supply chain digitization and logistics efficiency on the competitiveness of industrial enterprises. The study finds that the degree of supply chain digitization can enhance the competitiveness of industrial enterprises; logistics efficiency can help industrial enterprises improve their competitiveness; environmental regulation plays a positive moderating role in the relationship between logistics efficiency and the competitiveness of industrial enterprises; there is heterogeneity in the impact of supply chain digitization on the competitiveness of state-owned industrial enterprises and non-state-owned industrial enterprises, with a greater impact on the competitiveness of state-owned industrial enterprises than on non-state-owned ones. There is a significant difference in the impact of logistics efficiency on the competitiveness of state-owned industrial enterprises and non-state-owned industrial enterprises, with a noticeably greater impact on the competitiveness of non-state-owned industrial enterprises than on state-owned ones.

The Impact of Green Finance and Technological Innovation on Corporate Environmental Performance: Driving Sustainable Energy Transitions

As global sustainability imperatives increase, understanding how green finance policies and technological innovation influence corporate environmental performance has become a relevant issue. This study examines the impact of green finance on corporate environmental practices, particularly focusing on how innovation enhances sustainable energy transitions. A difference-in-differences (DID) approach was employed. This research compares corporate environmental performance before and after the implementation of green finance policies across treated and control groups. This method allows for isolating the effect of green finance by controlling for temporal and individual factors, providing robust insights into policy efficacy. Our findings indicate a statistically significant improvement in environmental performance, particularly among larger, state-owned enterprises in China’s eastern regions. The findings also underscore the moderating role of innovation in optimizing green finance outcomes. Finally, important implications for policymakers aiming to drive corporate sustainability are offered.