Does the mixed ownership reform work? Influence of board chair on performance of state-owned enterprises

Controlling the investment activities of company representatives helps to avoid inefficient investment activities. Shareholders will face with risks if manager’s decisions which not bring benefits to shareholders (according to agency theory). Studying the influence of corporate governance on investment has an important role in controlling investment activities of enterprises. Therefore, the authors analyze the impact of corporate governance on investment of small and medium enterprises (SMEs) in Vietnam from 2014 to 2018. With data collected from 480 small and medium enterprises in Vietnam. The results show that state-owned enterprises tend to invest less than non-state enterprises. Companies with manager is board chair and manager hold shares will make investing more. Revenue growth and financial leverage have a positive impact on investment. From the results of this study, the authors also make some recommendations to help control investment activities in the enterprise through corporate governance characteristics.

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A Study on Problems and Countermeasures in Mixed Ownership Reform of State-owned Enterprises

Proceedings of the 2017 4th International Conference on Education, Management and Computing Technology (ICEMCT 2017) ◽

10.2991/icemct-17.2017.82 ◽

2017 ◽

Cited By ~ 1

Author(s):

Xiaoling Zheng

Keyword(s):

Ownership Reform

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Professional Managers and Long-term Investment in State-owned Enterprises

E3S Web of Conferences ◽

10.1051/e3sconf/202021402039 ◽

2020 ◽

Vol 214 ◽

pp. 02039

Author(s):

Wu lan ◽

Mao Liqing ◽

Yu Lingli

Keyword(s):

Market Competition ◽

Professional Managers ◽

Professional Manager ◽

Ownership Reform

In the background of mixed ownership reform, the introduction of professional managers in state- owned enterprises is to gradually integrate with the market, participate in market competition, and improve the efficiency of state-owned assets. However, due to the late introduction of China, the professional manager system of state-owned enterprises is constantly developing and improving. The results of this study show that the introduction of professional managers in state-owned enterprises will reduce the long-term investment of enterprises, but it is not significant in the case of the combination of manager and chairman. This paper puts forward a new direction and thinking for the construction of professional manager system.

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