Direct government ownership of banks

Author(s):  
Allen N. Berger ◽  
Raluca A. Roman
2017 ◽  
pp. 5-37 ◽  
Author(s):  
A. Abramov ◽  
A. Radygin ◽  
M. Chernova ◽  
R. Entov

The paper examines the influence of state participation in the ownership structure of companies on their financial efficiency using a sample of 114 largest companies in Russia. As an indirect indicator of efficiency we used a variety of financial indicators: revenue per employee (gross margin), return on equity, profit margin and debt burden. The authors have tried to discriminate the influence of direct and indirect state ownership. Using econometric analysis we conclude that the size of the block of shares owned by the state has negative effect on the performance characteristics, and its increase is associated with an increase in the debt burden of companies. According to our criteria, state-owned enterprises (SOEs) on average perform worse than private companies. The study shows that a change in the profitability of private companies is characterized by a significant dependence on the movement of indirect productivity characteristics. At the same time, for SOEs the similar correlation between return on equity and efficiency characteristics was not revealed. The study shows that the increase of the size of direct government ownership leads to lower productivity and profitability; the impact of indirect state ownership is, seemingly, more complicated.


2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.


2019 ◽  
Vol 15 (Chinese) ◽  
pp. 81-92
Author(s):  
László Domokos ◽  
Mária Makkai ◽  
Virgil Szommer

2012 ◽  
Author(s):  
Narjess Boubakri ◽  
Omrane Guedhami ◽  
Chuck C.Y. Kwok ◽  
Walid Saffar
Keyword(s):  

2021 ◽  
pp. 106164
Author(s):  
Jo-Ann Suchard ◽  
Mark Humphery-Jenner ◽  
Xiaping Cao

1938 ◽  
Vol 27 (9) ◽  
pp. 434-453
Author(s):  
Winston W. Crouch
Keyword(s):  

2017 ◽  
Vol 34 (1) ◽  
pp. 49-61 ◽  
Author(s):  
Davidson Sinclair ◽  
Larry Li

Purpose The purpose of this paper is to investigate how Chinese firms’ ownership structure is related to their effective tax rate. The People’s Republic of China provides an interesting environment to examine the corporate income tax. Government has significant ownership stakes in the for-profit economy and state-owned enterprises (SOEs) are liable to the corporate income tax. This is very different to most other economies where SOE tends to dominate the not-for-profit economy and pays no corporate income tax. Government ownership also varies between the central government and local government in addition to state asset management bureaus. This provides a rich institutional background to examining the corporate income tax. Design/methodology/approach A panel data analysis approach is used to examine relationship between ownership structure and effective tax rates of all public firms in China from 1999 to 2009. Findings The authors report that effective tax rates do appear to vary across the ownership types, but that SOEs pay a statistically higher effective tax rate than to non-state-owned. In addition, local government owned SOE pay higher effective tax rates than central government and SAMB owned SOE. The authors also investigate Zimmerman’s (1983) political cost hypothesis. Unfortunately, these results are econometrically fragile with the statistical significance of those results varying by empirical technique. Originality/value This paper provides insight into government ownership and taxation in China.


1970 ◽  
Vol 64 (1) ◽  
pp. 124-137 ◽  
Author(s):  
Howard D. Hamilton

Any middle-aged member of the political science guild in a retrospective mood might ponder a question: “What ever happened to direct democracy?” In our halcyon student days the textbooks discussed the direct democracy trinity—initiative, referendum, and recall—described their mechanics and variations, explained their origin in the Progressive Era, told us that the United States, Australia, and Switzerland were leading practitioners of direct democracy, cited a few eccentric referenda, gave the standard pro and con arguments, and essayed some judgments of the relative merits of direct and representative democracy. Latter day collegians may pass through the portals innocent of the existence of the institutions of direct government. Half of the American government texts never mention the subject; the others allocate a paragraph or a page for a casual mention or a barebones explanation of the mechanics.A similar trend has occurred in the literature. Before 1921, every volume of this Review had items on the referendum, five in one volume. Subsequently there have been only seven articles, all but two prior to World War II. “The Initiative and Referendum in Graustark” has ceased to be a fashionable dissertation topic, only four in the last thirty years. All but two of the published monographs antedate World War II.


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