Influence of the Government as a Major Stakeholder on the Company’s Performance

Abstract

The paper analyzes a sample of 201 traded state-owned enterprises from different countries and industries and defines how the peculiarities of the corporate governance typical for these companies affect their performance indicators. The paper’s novelty is in using two techniques which are proved by the whole body of theoretical literature but still rarely used in practice: ultimate beneficiary ownership and CEO affiliation index – together with commonly used CEO and Board characteristics in one comprehensive model. The results indicated significant positive relationship between CEO affiliation and ROA and ROS; and significant negative relationship between share of the government and ROE and ROA. Many other characteristics of the CEO, board structure and state- and industry-related factors have also appeared to be significant.

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