scholarly journals Measuring and Analysing the Financial Performance of State-Owned Economic Entities

2021 ◽  
Vol 66 (Special edition 2021/2) ◽  
pp. 31-51
Author(s):  
Krisztina Kistóth
Keyword(s):  
Public Sector ◽  
Financial Performance ◽  
Financial Indicators ◽  
Public Companies ◽  
Homogeneous Groups ◽  
Measurement Issues ◽  
State Audit ◽  
Adjusted Indicators ◽  
Public Money ◽  
And Performance

The experts of the State Audit Office of Hungary analysed financial performance measurement issues of state-owned companies (public companies) with the aim to apply the principle of performance as widely as possible during public money spending. In many respects, the same tools can be used to measure and analyze the performance of these companies as for private sector companies, however misrepresentations arising from public sector specialties must be filtered out. Therefore, an adjusted version of the financial indicators has been prepared, using corrective items specifically focusing public sector specificities. To test the adjusted indicators, we prepared an analysis for a group of 148 public companies, the main findings of which are presented in our article. The special conditions, operation or risks of state-owned companies may require different tools and priorities in terms of ownership control. In this article, we try to form relatively homogeneous groups, portfolios - based on adjusted financial indicators- which helps the owner to treat groups of companies differently according to financial capabilities and performance. Classification into groups can draw attention to critical management factors, risks, but also strengths as well. In this way, the development of portfolios can provide a good basis for effective ownership management of companies.

scholarly journals Human resource management and performance at the Indian Railways

2018 ◽  
Vol 31 (1) ◽  
pp. 47-61 ◽  
Author(s):  
Vijay Edward Pereira ◽  
Rita Fontinha ◽  
Pawan Budhwar ◽  
Bimal Arora
Keyword(s):  
Public Sector ◽  
High Performance ◽  
Financial Indicators ◽  
Developed Country ◽  
Content Type ◽  
The Public ◽  
High Performance Work Practices ◽  
And Performance ◽  
Context Specific ◽  
Social Importance

Purpose High-performance work practices (HPWPs) have been well documented within private organisations in developed country economies. Such practices, however, remain under-investigated in the public sector and in emerging economies. The purpose of this paper is to work towards filling this void, by empirically evaluating HPWP within an Indian public sector undertaking (PSU), also the world’s largest commercial public sector employer: the Indian Railways (IR). Design/methodology/approach The authors investigate whether the practices implemented in this organisation are consistent with the idea of HPWPs, and analyse how they are influenced by different stakeholders and ultimately associated with different indicators of organisational performance. The authors focused on six railway zones and interviewed a total of 62 HR practitioners. Findings The results show that most practices implemented are aligned with the idea of HPWPs, despite the existence of context-specific unique practices. Furthermore, the authors identify the influence of multiple stakeholders in decision making concerning different practices. The authors additionally found that the measurement of performance goes beyond financial indicators and several context-specific non-financial indicators are identified and their social importance is reiterated. Originality/value Theoretically, this paper utilises and contributes to the resource-based view of firms by identifying a distinctive bundle of competencies in human resources through HPWS in the IR.

scholarly journals Corporate governance and ownership structure in Brazil: causes and consequences

2008 ◽  
Vol 5 (2) ◽  
pp. 36-54 ◽  
Author(s):  
Pablo Rogers ◽  
Anamélia Borges Tannús Dami ◽  
Kárem Cristina de Sousa Ribeiro ◽  
Almir Ferreira de Sousa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Public Companies ◽  
Main Determinant ◽  
Internal Mechanism ◽  
Market Instability ◽  
And Performance

The literature indicates that, mainly in countries with high stock concentration, the ownership structure is an important internal mechanism of control of the corporate governance, with effects in the companies’ value and performance. In Brazil, the existing relationship among corporate governance - ownership structure - performance is still not conclusive. The present study investigates if there is any relationship among ownership structure, financial performance and value in the Brazilian nonfinancial public companies with stocks negotiated in the São Paulo Stock Exchange, between the period of 1997 to 2001, as well as the determinant of the level of concentration of the ownership in these companies. In the empiric investigation it was used a multiple regression analysis through the estimators of the Ordinary Least Squares with heteroscedasticity in accordance with White (1980). Concerning the used methodology, the results indicate that the variables of ownership structure as defined do not have influence on the financial performance and value of the companies. Remaining to the determinant of the ownership structure of the Brazilian non-financial public companies, the results indicate that the ownership structure can be explained by the size of the firm, market instability and regulation, being the latter the main determinant of the ownership structure.

Corporate governance implementation rating in Indonesia and its effects on financial performance

2017 ◽  
Vol 17 (2) ◽  
pp. 250-265 ◽  
Author(s):  
Agus Wahyudin ◽  
Badingatus Solikhah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Performance ◽  
Continuous Assessment ◽  
Public Companies ◽  
Content Type ◽  
The Government ◽  
And Performance

Purpose The purpose of this paper is to investigate the effect of corporate governance (CG) implementation rating conducted by the Indonesian Institute for Corporate Governance (IICG) on the financial performance of the selected companies. Design/methodology/approach This paper is a hypothesis testing study to analyze CG implementation of 88 firms listed on the Indonesian Stock Exchange. The samples are companies that participated in the Corporate Governance Perception Index (CGPI) Awards in 2008-2012. A panel data regression analysis is conducted on the data collected from IICG reports and its financial statements. Findings The awareness regarding good corporate governance (GCG) enforcement in Indonesian companies has already increased. The listed companies that participated in CGPI Awards during 2008-2012 always experience an increase in both quantity and quality. CG rating of go-public companies in Indonesia affects their accounting-based financial performance, such as return on assets, return on equity and earnings per share. However, CG implementation rating is not directly responded by the Indonesian stock market and has not yet been able to increase the company’s growth in the short term. Research limitations/implications In this study, CGPI rating in a related year is linked to market performance in the same year. Thus, further research may link CGPI rating to market performance in the next year, as the findings of this study show that GCG implementation is not directly responded by the market. Practical implications GCG implementation is required by stakeholders, as it may give a long-term positive impact. Thus, the government needs to stipulate regulations to increase the commitment of the company in implementing GCG. The company can improve the internal factors of the organization that does not support the establishment of GCG based on the findings during the survey of CGPI. Finally, investors and creditors may consider the CGPI rating for their investment decisions. Originality/value This study contributes to the literature in two ways. First, this study uses the comprehensive CG rating in Indonesia. Previous studies on CG rating focused on internal mechanism; in this study, the rating was assessed using four stages of continuous assessment: self-assessment, document evaluation, paper assessment and company visit, which was conducted by an independent team. Second, this study uses the CG index (compliance, conformance and performance) associated with a variety of accounting-based and market-based performance variables: financial performance, market value and growth.

scholarly journals Gender influence, social responsibility and governance in performance

2019 ◽  
Vol 54 (2) ◽  
pp. 154-177 ◽  
Author(s):  
Andreia Carpes Dani ◽  
Jaime Dagostim Picolo ◽  
Roberto Carlos Klann
Keyword(s):  
Social Responsibility ◽  
Financial Performance ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Public Companies ◽  
Content Type ◽  
Publicly Traded Companies ◽  
And Performance ◽  
Corporate Social ◽  
The Relationship

Purpose This paper aims to analyze the influence of gender diversity on the relationship between corporate social responsibility (CSR), corporate governance (CG) and economic and financial performance of Brazilian publicly traded companies. Design/methodology/approach The sample comprises 68 non-financial public companies comprising the IBX100 index of BM&FBOVESPA. For that, it was used panel data modeling, correlation and ranking by TOPSIS method. Findings The results suggest a significant relationship between CG and economic–financial performance when mediated by gender diversity. This relationship was not observed between CSR and economic–financial performance. Thus, it can be concluded that in a diversified board of directors, in terms of gender, better monitoring of managers can occur because of the increase in their independence in decisions, as well as performance increase. These results diverge from the literature on the influence of women’s participation in corporate boards in CSR. It is assumed that this result is because of the fact that the participation of women is recent in Brazil. Research limitations/implications The main limitations are the number of companies analyzed, the choice of ISE index to verify the CSR variable and the metric used to verify the CG mechanisms. Originality/value In general, this research contributes to the literature of the area, especially in Brazil, in confirming that the mediating variable gender diversity makes the relationship between CG and performance more significant.

A Study of Effect of NPAs on the Financial Performance of Public Sector Banks in India

PRODUCTIVITY ◽  
2019 ◽  
Vol 60 (1) ◽  
pp. 70-78
Author(s):  
PREETI . ◽  
◽  
Dr. Kuldip Singh Chhikara ◽  
Keyword(s):  
Public Sector ◽  
Financial Performance ◽  
Public Sector Banks

Financial Performance of ECIL, Hyderabad – An Analysis

2013 ◽  
Vol 3 (2) ◽  
Author(s):  
N. Jyothi ◽  
Dr. T. Satyanarayana Chary
Keyword(s):  
Public Sector ◽  
Performance Analysis ◽  
Private Sector ◽  
Financial Performance ◽  
Business Environment ◽  
Present Position ◽  
Short Term ◽  
Comprehensive Manner

Financial performance of individual organizations differ very significantly, however, the performance is distinguishable between public sector companies and private sector companies as their nature and size of investment and business environment is different . The ECIL is a very vast growing company which requires additional funds on a regular basis, whether internal or external. Particularly, the company needs both long term and short-term finances in view of its present position and enormous scope for improvement in the services provided. The present paper is a modest attempt to discuss the financial performance analysis of ECIL, Hyderabad in terms operating profits, capital employed ratios and turnover in a comprehensive manner over a period of 10 years.

Analysis of Financial Performance of Public Sector Banks in India: CAMEL

2020 ◽  
pp. 097674792096686
Author(s):  
Yudhvir Singh ◽  
Ram Milan
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Positive Impact ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Factors Affecting ◽  
Public Sector Banks ◽  
The Government ◽  
And Performance ◽  
Asset Quality

Public sector banks have been merged by the government in the last few years. This is the rationale behind conducting this study. The purpose of this article is to determine the factors affecting the performance of public sector banks in India and the interrelationship between bank-specific determinants and performance of public sector banks. In this article, we shall analyse the financial data of all the public sector commercial banks for a period spread across 11 years (2009–2019); Capital adequacy, Assets quality, Management efficiency, Earning, and Liquidity (CAMEL) has been used as a performance determinant; system generalised method of moments (GMM) analysis has been used to find the effect of determinants on the performance measurement of public sector banks; and CCA (canonical correlation analysis) has been used to find the interrelationship between the bank-specific determinants and the performance of public sector banks. The finding has important implications in terms of performance in the banking sector. Certain limitations of this study are: It is based on secondary data. The study only covers the financial aspects and not the non-financial aspects. It is found that the asset quality is negatively related with performance of public sector banks. Liquidity and inflation are inversely related to performance of public sector banks in India. Capital adequacy is positively related with banks’ performance, but inversely related with banks’ interest margin. GDP growth has a significant positive impact on banks’ performance, but inversely related with banks’ interest income. Inflation rate is inversely related with banks’ performance. Banking sector reforms are insignificantly related with banks’ performance.

Boards and governance of state-owned enterprises

2014 ◽  
Vol 14 (2) ◽  
pp. 238-251 ◽  
Author(s):  
Samuel Nana Yaw Simpson
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Boards Of Directors ◽  
Evaluation Criteria ◽  
Executive Directors ◽  
Middle Income ◽  
Content Type ◽  
And Performance ◽  
Legal Frameworks ◽  
State Enterprises

Purpose – This study aims to examine the structure, attributes, and performance of boards of directors of state-owned enterprises (SOEs) within the broader context of public sector governance. This is informed by the less attention given to the concept among public sector organizations despite efforts to make state enterprises more effective and efficient, especially in developing and middle income countries. Design/methodology/approach – Data was collected through questionnaires self-administered in 2010 to all 25 SOEs in Accra, Ghana, out of the 29 nationwide. Some key officials were interviewed and documentary evidence analyzed to achieve triangulation of data and results. Findings – Results show that state-owned enterprises have boards and comply with the minimal governance issues outlined the legal frameworks establishing them. However, they exhibit significant weaknesses in the areas of board performance evaluation, criteria for board appointment, the balance of executive directors and non-executive directors, and other board characteristics, indicating a departure from general practices. Practical implications – Findings suggest the need for a tailored corporate governance framework or code for state-owned enterprises in developing countries. Originality/value – Compared to the literature, this study provides insight on boards from the perspective of state enterprises in ensuring good corporate governance, particularly in the context of a middle income country (Ghana).

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