Performance Differential Between Private and State-Owned Enterprises: An Analysis of Profitability and Leverage

Phi, Nguyet Thi Minh; Taghizadeh–Hesary, Farhad; Chuc, Anh Tu; Yoshino, Naoyuki; Kim, Chul Ju

doi:10.2139/ssrn.3470070

Cited by 14 publications

(6 citation statements)

References 29 publications

(57 reference statements)

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“…Coming to the ROA and ROE ratio, except for the domestic private sector, both these ratios from SOEs are roughly a half of their FDI counterparts but they are still much higher than that of POEs. Globally, the profitability of SOEs is lower compared to that of POEs that are more productive than SOE counterparts (Phi et al 2019). However, the profitability of Vietnamese POEs is the lowest among three enterprise types.…”

Section: Current Status Of Soe Performancementioning

confidence: 93%

State-Owned Enterprise Reform in Viet Nam: Progress and Challenges

Dang

Nguyen

Taghizadeh–Hesary

2021

ADB Institute Series on Development Economics

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Being one of the former centrally planned economies, Viet Nam is still home to a substantial state-owned sector. From the implementation of the "Doi Moi" policy in the late 1980s, the restructuring of state-owned enterprises (SOEs) since 1990 is considered as one of three crucial pillars in the process of economic reform toward a market-oriented economy under deeper international economic integration. This paper examines existing challenges in the process of reforming the SOE sector in Viet Nam. The outcome of analysis indicates that SOE reform has made progress that has resulted in a significant reduction in the number of SOE, expansion in the production capacity, improvement of expertise and management ability, and enhancement of competitiveness. On the other hand, the reforming of SOEs has been confronted with a range of issues that require an overarching revised regulatory framework and legal enforcement to accelerate the speed of the privatization process combined with improving the accountability and transparency in evaluating SOE performance as well as applying formal and consistent measurement system to facilitate their reforming.

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Section: Current Status Of Soe Performancementioning

confidence: 93%

State-Owned Enterprise Reform in Viet Nam: Progress and Challenges

Dang

Nguyen

Taghizadeh–Hesary

2021

ADB Institute Series on Development Economics

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“…Dalam penelitian Phi (2019) yang dilakukan pada 50.000 perusahaan pemerintah dari berbagai negara menyatakan bahwa penyertaan modal pemerintah berpengaruh negatif pada profitabilitas dan solvabilitas suatu perusahaan. Hal tersebut bertolak belakang dengan penelitian Jou, Chen, dan Tsai (2017) yang menyatakan bahwa suntikan modal pemerintah berpengaruh positif pada ROE (Return on Equity) dan mengurangi risiko pinjaman pada bank pemerintah di China.…”

Section: Pendahuluanunclassified

Analisis Pengaruh Penyertaan Modal Negara, Solvabilitas, Likuiditas Dan Pertumbuhan Aktiva Terhadap Kinerja Keuangan Bumn

Mada

Dati

2022

IDEIJEB

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Financial performance was an indicator that showed the future prospects for the company's sustainability. By researching financial performance, it will likely be able to measure the effectiveness of providing state equity participation to Indonesia's State-Owned Enterprises (SOEs) because every year, the government always allocates a large budget. However, few SOEs were losing money, and the losses were increasing yearly. Furthermore, it aimed to analyze the effect of solvency, liquidity, and asset growth on the financial performance of Indonesian SOE recorded on the BUMN20 Index for the 2018– 2020 period. Data was collected by using purposive sampling. Twelve SOEs listed on the BUMN20 Index were used as research samples. The analysis technique was multiple linear regression. State equity participation was calculated by comparing equity with total assets. The solvency ratio used was the debt ratio and the liquidity ratio used was the current ratio. Asset growth was calculated by calculating the annual change in total assets, while ROE and ROA calculated financial performance. The study showed that state equity participation had no significant effect on financial performance, while solvency and asset growth significantly negatively affected financial performance. The liquidity had a significant negative effect on financial performance when measured by ROE, while if measured by ROA, the results were insignificant. Kinerja keuangan merupakan indikator yang menunjukkan prospek keberlangsungan perusahaan pada masa yang akan datang. Dengan melakukan penelitian pada kinerja keuang- an diharapkan mampu mengukur keefektifan pemberian PMN pada perusahaan BUMN karena setiap tahunnya pemerintah selalu mengalokasikan anggaran yang besar untuk Penyertaan Modal Negara pada BUMN. Namun, tidak sedikit BUMN yang justru merugi dan kerugiannya semakin besar setiap tahunnya. Selain itu, penelitian ini juga bertujuan menganalisis pengaruh solvabilitas, likuiditas dan pertumbuhan aktiva pada kinerja keuangan Badan Usaha Milik Negara yang tercatat pada Indeks BUMN20 periode 2018–2020. Teknik sampling yang dipakai pada penelitian ini adalah purposive sampling. Terdapat 12 (dua belas) BUMN yang tercatat pada Indeks BUMN20 yang dipakai sebagai sampel penelitian. Teknik analisis yang dipakai adalah regresi linear berganda. Hasil penelitian menyimpulkan bahwa penyertaan modal negara tidak berpengaruh secara signifikan pada kinerja keuangan, sedangkan solvabilitas dan pertumbuhan aktiva berpengaruh negatif signifikan pada kinerja keuangan. Adapun likuiditas berpengaruh negatif signifikan pada kinerja keuangan jika diukur dengan ROE, sedangkan jika diukur dengan ROA hasilnya adalah tidak signifikan.

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“…The entrenched interests of NOCs and national coal companies, especially in countries that are highly dependent on revenues from fossil fuels, can prevent many of these companies from reducing production (Alsharif et al, 2017;Stevens et al, 2015). They are less subject to short-term competition and market pressures than private companies, meaning they also tend to be less commercially efficient and organizationally nimble (Eller et al, 2011;Phi et al, 2019;Wolf & Pollitt, 2008); this can make it harder to pivot to new lines of business. Most NOCs have an explicit legal mandate to extract fossil fuels and manage the large revenues they generate as their main or sole objective -an additional obstacle that stands in opposition to the goals of a low-carbon transition.…”

Section: Barriersmentioning

confidence: 99%

The Production Gap Report 2021

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2021

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Performance Differential Between Private and State-Owned Enterprises: An Analysis of Profitability and Leverage

Cited by 14 publications

References 29 publications

State-Owned Enterprise Reform in Viet Nam: Progress and Challenges

State-Owned Enterprise Reform in Viet Nam: Progress and Challenges

Analisis Pengaruh Penyertaan Modal Negara, Solvabilitas, Likuiditas Dan Pertumbuhan Aktiva Terhadap Kinerja Keuangan Bumn

The Production Gap Report 2021

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