A Comprehensive Evaluation Framework on the Economic Performance of State-Owned Enterprises

Abstract

The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. Working papers are subject to formal revision and correction before they are finalized and considered published.

Is the Management Evaluation System of State-Owned Enterprises in the Republic of Korea a Good Tool for Better Performance?

“…Furthermore, SOEs usually operate in relatively non-competitive markets and have their autonomy limited by government interventions (Taghizadeh-Hesary et al 2019). In particular, if the government uses SOEs as a management tool for achieving a policy purpose, the performance of SOEs can be distorted (Behn 2010;Ra and Yoon 2013).…”

“…In addition to profitability indicators, methods of measuring performance have also been suggested recently in consideration of institutional and national characteristics such as operating conditions, financial structure, size and HRM status, leadership, market structure, government policies, etc. (Brewer and Selden, 2000;De Castro and Uhlenbruck 1997;Ingraham et al 2003;Murtha and Lenway 1994;Li and Tang 2009;Rainey and Steinbauer 1999;Taghizadeh-Hesary et al 2019). After all, it is necessary to consider the various factors comprehensively in order to measure the performance of SOEs (Aharoni 1981).…”

The Privatization of Japan Railways and Japan Post: Why, How, and Now

“…A comprehensive reform of JNR was called for to solve these pressing problems. Such SOE reform is not just for better financial performance but more importantly, for enhanced consumer satisfaction and social welfare (Taghizadeh-Hesary et al 2019). Accordingly, "privatization" was proposed as a way to solve problems perceived to be attributable to its public enterprise status, and its breaking up into several companies was planned as a way to address problems attributable to the nationwide, monolithic nature of the organization.…”

State-Owned Enterprises in Uzbekistan: Taking Stock and Some Reform Priorities

“…In such an environment, the new system of monitoring the performance of SOEs introduced in 2015 will likely not be able to fully shift the set of incentives SOE management faces, in particular from the traditional objective of achieving quantitative production targets to the goal of increasing and maintaining the economic efficiency of an enterprise. Comprehensive SOE evaluation methods, along the lines of the approach discussed in Taghizadeh-Hesary et al (2019), should be considered as well.…”