scholarly journals State ownership and efficiency characteristics

2017 ◽  
pp. 5-37 ◽  
Author(s):  
A. Abramov ◽  
A. Radygin ◽  
M. Chernova ◽  
R. Entov
Keyword(s):  
State Ownership ◽  
Government Ownership ◽  
Gross Margin ◽  
Private Companies ◽  
Return On Equity ◽  
Debt Burden ◽  
Lower Productivity ◽  
Negative Effect ◽  
Direct Government ◽  
The Impact

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.

RESIDUAL GOVERNMENT OWNERSHIP AND FIRM VALUE IN A TRANSITIONAL ECONOMY

2019 ◽  
pp. 1-14 ◽  
Author(s):  
XUAN VINH VO
Keyword(s):  
Firm Value ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Transitional Economy ◽  
State Ownership ◽  
Government Ownership ◽  
Privatized Firms ◽  
Negative Effect ◽  
High Level ◽  
The Impact

There is a high level of residual government ownership after privatization processes of state-owned firms in many transitional economies. Accordingly, the role of residual government ownership in firms in these economies draws strong attention from researchers resulting in a huge volume of papers in the literature. This naturally motivates us to examine whether state ownership affects the firm value in Vietnam, a successful transitional economy. More specifically, this paper aims to provide further insights into the impact of residual government ownership on the value of privatized firms listed on the Ho Chi Minh City stock exchange covering the period from 2009 to 2014. Using panel data techniques of fixed effects estimator, our empirical results indicate that residual government ownership have a negative effect on value of Vietnamese firms. This finding provides important implications for different stakeholders in transitional countries.

The impact of credit risk on the financial stability of commercial banks in Vietnam

2021 ◽  
Vol 11 (2) ◽  
pp. 67-80
Author(s):  
Nguyen Quoc Anh ◽  
Duong Nguyen Thanh Phuong
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Financial Stability ◽  
Dynamic Panel Data ◽  
Z Score ◽  
Return On Equity ◽  
Score Analysis ◽  
Negative Effect ◽  
The Difference ◽  
The Impact

This study investigates the impact of credit risk on the financial stability of Vietnamese commercial banks. The paper uses the Z-score to proxy the financial stability of banks. We use the data of 27 Vietnamese commercial banks on BankScope, during 2010 - 2019. The paper applied a dynamic panel data approach; the selected method is the difference GMM (DGMM). The key question discussed is which factor impacts on Z-score. Analysis results show the negative effect of non-performing loans on the financial stability of banks. When commercial banks have higher non-performing loans, the lower the financial stability is. Additionally, bank-specific variables such as equity on asset ratio, the return on equity, the size of the bank and set of macroeconomic variables affect the bank’s financial stability. Based on the analysis results, we imply relevant policies for the State Bank of Vietnam and commercial banks.

The Impact of Ownership on Corporate Performance: The Case of the UAE

2018 ◽  
Vol 13 (3) ◽  
Author(s):  
Magda Elsayed Kandil ◽  
Minko Markovski
Keyword(s):  
Corporate Performance ◽  
Positive Impact ◽  
Listed Companies ◽  
State Ownership ◽  
Control Measures ◽  
Government Ownership ◽  
Strong Trend ◽  
Two Samples ◽  
The Impact ◽  
Positive Effect

AbstractThis study attempts to identify whether government ownership has an effect on corporate performance, such as Return on Assets (ROA), Price to Book value, and Profits for a sample of 102 listed companies on the UAE stock exchanges and a subsample of 17 banks listed on the same bourses over a period of 31 quarters. In the case of the sample of 102 companies, government ownership has a positive impact on some of the corporate performance indicators, as well in the banking subsample. In addition, the analysis evaluates the impact of state ownership on debt accumulated across the two samples. The results indicate that state ownership reduced the need to accumulate debt in general across the larger sample. However, focusing on banks, state ownership facilitates borrowing and accumulating debt. The results point to the positive effect of state ownership on corporate performance. Further, state ownership eases constraints on banks’ borrowing as it boosts confidence in the outlook, facilitating higher ratings and cheaper sources of funding. In the case of the UAE, similar to some other countries, where there is a strong trend toward government ownership in listed companies and banks, it has a positive effect on their performance for the period 2008–2016, i. e., there is a positive relationship between the block-holder ownership and firms’ performance, subject to efficiency control measures.

The influence of capital structure on firm profitability in USA and Bangladesh engineering industry

2021 ◽  
pp. 2150029
Author(s):  
Abdelkader Derbali
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Positive Influence ◽  
Engineering Industry ◽  
Company Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Effect ◽  
Real Picture ◽  
The Impact

The aim of this paper is not only to determine and compare the nature of capital structure but also its effect on company performance of engineering industry of USA and Bangladesh. We utilize a panel data methodology based on a sample of 34 listed engineering companies of Bangladesh on Dhaka Stock Exchange (DSE) and a mixture of 34 (small, medium and large) engineering companies listed in NASDAQ in USA during the period of study from 2012 to 2019. Our empirical results indicate that the capital structure of engineering industry of USA and that of Bangladesh is different. Also, we demonstrate that capital structure has negative effect on company profitability of engineering industry of USA. Capital structure presents a negative effect on Earning per Share and Return on Assets (ROA) and positive influence on Return on Equity (ROE) and Tobin’s Q of engineering industry of Bangladesh. We conclude that the impact of capital structure on company’s profitability by only one sector and then compare the findings to know the real picture of the link. Investors, auditors, analysts and practitioners should consider many factors to examine the banking performance. Our results from this study may relate to Asian countries with similarities in engineering industry to that in Bangladesh.

Philanthropic giving, sales growth, and tourism firm performance: An empirical test of a theoretical assumption

2018 ◽  
Vol 25 (6) ◽  
pp. 835-855
Author(s):  
Keling Wang ◽  
Yaqiong Miao ◽  
Ming-Hsiang Chen ◽  
Dengfeng Hu
Keyword(s):  
Firm Performance ◽  
Empirical Test ◽  
Critical Factor ◽  
State Ownership ◽  
Tourism Industry ◽  
Sales Growth ◽  
Theoretical Assumption ◽  
Return On Equity ◽  
Corporate Giving ◽  
The Impact

Aiming to test a theoretical assumption that corporate giving (CG) could increase sales of tourism firms and hence firm performance, this study empirically investigates whether CG could increase sales growth and enhance firm performance in the Chinese tourism industry. Empirical results can enhance theoretical innovation and development. Panel regression test results reveal three interesting findings and support the theoretical assumption. First, there is a variation in the impact of CG on tourism firm performance. While CG does not significantly affect Chinese travel firm performance, it has a significant effect on hotel firm performance in terms of sales growth, return on asset, and return on equity. Second, state ownership is not a critical factor in the financial impact of CG on travel and hotel firms. Third, the Chinese hotel industry might use CG a short-term image builder and sales and profitability generator rather than as a long-term competitiveness strategy. Lastly, there is an inverted U-shaped relationship between CG and hotel firm performance.

XBRL Implementation and Post-Earnings-Announcement Drift: The Impact of State Ownership in China

2016 ◽  
Vol 31 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Songsheng Chen ◽  
Jun Guo ◽  
Xiaoxiao Tong
Keyword(s):  
Information Asymmetry ◽  
Emerging Market ◽  
State Ownership ◽  
Government Ownership ◽  
Earnings Announcement ◽  
Ownership Structures ◽  
Business Reporting ◽  
Post Earnings Announcement Drift ◽  
Mandatory Adoption ◽  
The Impact

ABSTRACT In this paper, we test the impact of XBRL (eXtensible Business Reporting Language) on information asymmetry in the emerging market of China. We focus on the association between XBRL and information asymmetry (proxied by Post-Earnings-Announcement Drift [PEAD]) across two ownership structures: state-owned enterprises (SOEs), which are dominant in China, and non-state-owned enterprises (non-SOEs). We find that information asymmetry diminishes significantly, as reflected by a significant decline in PEAD, after the mandatory adoption of XBRL, and it diminishes more significantly in SOEs than non-SOEs. Our results remain robust after we control for market and accounting factors that may influence PEAD. Our paper not only supports XBRL's role in improving the market efficiency of the emerging market, but also first documents the impact of government ownership on the implementation of XBRL.

scholarly journals Influence of the size of equity on corporate efficiency

2017 ◽  
Vol 8 (2) ◽  
pp. 239 ◽  
Author(s):  
Sebastian Klaudiusz Tomczak
Keyword(s):  
Manufacturing Sector ◽  
Value Added ◽  
Data Availability ◽  
Manufacturing Companies ◽  
Gross Margin ◽  
Return On Equity ◽  
Equity Ratio ◽  
Return On Sales ◽  
The Impact ◽  
High Share

Research background: From the perspective of managers and shareholders, obtaining profit is the main goal and driver of company activity. A profitable company can find investors easily, because they count on a big return on investment. However, enterprises that are not effective enough could end up being taken over by others, go bankrupt or shut down business.Purpose of the article: is to identify the impact of a high share of equity in the total assets on the profitability of manufacturing companies.Methods: The focus of this paper is on the manufacturing sector. Research time-scale is set to sixteen years (2000–2015). The choice of this period is determined by data availability. In the examined interval of time over 15 thousand firms from the sector in question were flirted drawn from the EMIS. The gathered data enabled computation of the following financial indicators for the itemized companies: gross margin, operating margin, return on sales, return on assets, and return on equity. Then selection of companies was carried out to choose these with a high share of equity in its total assets. The proportion was regarded to be high if it reaches fifty one percent. Companies with quantities below this threshold have been excluded from the sample. The next step defines intervals (classes) for the equity ratio. Depending on the value of equity, the remaining firms were assigned to their corresponding class. In order to analyze influence of the quantity of equity on the level of profitability t-Student test for independent samples has been applied.Findings & Value added: The comparative analysis of the indicator of the size of equity with the indicators of profitability makes it possible to confirm that there is a significant impact on the value of profitability ratios of manufacturing companies. However, in most cases the impact is statistically irrelevant.

scholarly journals Assessment of returns from Zero impact of strategic strategy on firm’s performance

2015 ◽  
Vol 5 (1) ◽  
Author(s):  
Solomon Arhin
Keyword(s):  
Secondary Data ◽  
Future Research ◽  
Secondary Source ◽  
Gross Margin ◽  
Return On Equity ◽  
Strategic Philanthropy ◽  
Statistical Analysis Method ◽  
Managerial Implications ◽  
Research Findings ◽  
The Impact

<p>Critics argue sharply and blamed top management inappropriately for utilizing corporate strategic philanthropy as a tool to redeem their fallen image instead of the interest of the company. Nevertheless, there is a school of thought that believes that strategic philanthropy model have no impacts on the corporate performance especially in the recession period. This study focuses on Measurement of the impact of strategic philanthropy behavior on profitability measures: ROA, ROE.  This study also measure Gross margin and Turnover model of strategic philanthropy in the selected firms. This research begins with audited consolidated financial statement of 59 listed companies comprising of 471 subsidiaries that were operating in the four years under study to obtain the secondary data. Initial approach of Statistical analysis method using IBM SPSS version 21 is used to analyze the data obtained from the secondary source. The research findings support the null hypothesis that there is no evidence to support that strategic philanthropy have impact on firms’ performance. Based on the research findings, managerial implications and directions for future research are discussed.</p><p>Keywords: Return on assets (ROA), Return on equity (ROE), Gross margin, Turnover, Subsidiaries</p>

scholarly journals Does ESG Reporting Relate to Corporate Financial Performance in the Context of the Energy Sector Transformation? Evidence from Poland

Energies ◽  
2022 ◽  
Vol 15 (2) ◽  
pp. 477
Author(s):  
Michał Baran ◽  
Aneta Kuźniarska ◽  
Zbigniew J. Makieła ◽  
Anna Sławik ◽  
Magdalena M. Stuss
Keyword(s):  
Financial Performance ◽  
Energy Sector ◽  
State Ownership ◽  
Corporate Financial Performance ◽  
Return On Equity ◽  
Free Competition ◽  
Market State ◽  
High Level ◽  
Return On Sales ◽  
The Impact

This paper aims to investigate whether the environmental, social and corporate governance (ESG) score of companies operating in the energy sector is associated with their corporate financial performance (CFP). The research covered data from eight companies with a dominant position in the Polish energy sector. The research used the comparative analysis between ESG performance and accounting-based measures of profitability: return on equity (ROE), return on assets (ROA) and return on sales (ROS). Additionally, reference was also made to the DuPont model. The acquired results do not reveal repetitive dependencies that would facilitate the discovery of a pattern of the impact of the factors of ESG on the financial performance of enterprises. Despite indicating the cases of correlations between the ESG scores and CFP at a high level, indeed sometimes at a very high level, the particular case studies significantly differ from each other. This may be caused by the fact that Polish enterprises from the energy sector illustrate far-reaching specifics, among others, with regard to the key significance of the entities with a prevalent state ownership and strict administrative regulations, which are subject to the energy market, state of development and structure of the whole sector in Poland. Thus, this is also why the mechanisms or dependencies, whose existence it is possible to expect in conditions of free competition, may be weakened or even eliminated in Polish conditions.

scholarly journals Signalling and Legitimacy Theories for Explaining Climate Information Disclosure by Russian Companies

2021 ◽  
Vol 15 (2) ◽  
pp. 16-26
Author(s):  
Elena Fedorova ◽  
Maria Martynova
Keyword(s):  
Climate Change ◽  
Information Disclosure ◽  
Negative Impact ◽  
State Ownership ◽  
Absolute Amount ◽  
Distinctive Features ◽  
Debt Burden ◽  
Industry Affiliation ◽  
Company Growth ◽  
The Impact

This paper studies the factors influencing the level of climate-related disclosure by Russian companies. It has several distinctive features in comparison to previous works: 1) climate change disclosure by Russian companies is studied for the first time; 2) textual analysis is used to evaluate the level of disclosure, and a new Russian glossary on climate change is compiled; 3) a unique set of indicators is used to assess the impact of factors on climate change disclosure. Legitimacy and signalling theories are used to formulate the hypotheses. The sample consists of 47 Russian companies with the largest market capitalization. Their 235 annual and sustainability reports for 2015-2019 are analysed. Using regression analysis, we show that a company’s absolute amount of greenhouse gas emissions, size, industry affiliation, and CDPrating positively affect its level of disclosure about climate change. In contrast, state ownership and a high debt burden have a negative impact. At the same time, the newness of assets, capital expenditures, interest coverage and company growth opportunities have no effect on climate change disclosure. Empirical results have confirmed the applicability of legitimacy theory to the Russian market. The present study will provide investors and regulators with tools for predicting a company’s impact on climate based on its level of climate change disclosure.

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