1 Journal of Institutional and Theoretical Economics (JITE) 145 (1989), Zeitschrift fiir die gesamte Staatswissenschaft Comparative Performance of Government-owned and Privately-owned Industrial Corporations - Empirical Results from Six Countries by ARNOLD PICOT and THOMAS KAULMANN 1, Introduction Large corporations which are government-owned are the subject of continuing debate, especially with respect to their assumed inferior performance and also with respect to the privatization plans of West European governments 1, Corporations that are totally owned by government (or dominantly influenced by the government share of equity) represent a special form of ownership of the firm which has potential specific consequences for the behavior of the firm. On the basis of the theory of property rights 2 and competition theory 3 the economic consequences of this form of ownership may be analyzed. Section 2 summarizes the theoretical arguments that are transformed into specific hypotheses in Section 3. In order to investigate the explanatory power of the theory, in Section 4 the hypotheses are tested with firm-specific empirical data derived from the "Fortune Outside the US". Thus, it is possible to compare privately-owned and government-owned industrial corporations of six industrial nations on a broad data basis 4. It must be noted that typical corporations from the public service sector, such as railways, PTT, broadcasting, public utilities, hospitals etc. are not included in the sample as this type of public firm very often operates in regulated markets 5. The analysis, therefore, 1 See e.g. Wirtschaftswoche ; BUTLER , SLAVICH . 2 E.g. ALCHIAN ; DEMSETZ ; ALCHIAN and DEMSETZ ; PICOT ; KAULMANN [1987a]. 3 E.g. ALCHIAN ; PICOT ; BOBEL . 4 This study is an elaboration of a previous study conducted by the authors (PICOT and KAULMANN ). The present study employs a longer time frame ( ) than in the previous study ( ). The conclusions of the present study confirm the previous findings. 5 An overview of the empirical efficiency differences between state and private production is given in BoRCHERDING, POMMEREHNE, and SCHNEIDER . These authors summarize 48 empirical studies, three of which show lower costs for state production, five do not exhibit significant differences and 40 found lower performance levels in state production as compared to private production.
2 145/2 (1989) Performance of Government- and Privately-owned Corporations 299 is confined to corporations that act in unregulated markets and that are exposed to national and international competition 6. The study aims at a microeconomic comparison, in order to ascertain whether there are systematic differences in performance between the two groups. The investigation assumes that government-owned corporations orient their behavior towards monetary and market-oriented goals that are similar to those of their private competitors. Thus, as far as differences in performance can be traced, they can be attributed - ceteris paribus - to the specific property rights constellation. Of course it is very difficult to find out what the objectives of government-owned large corporations are. Even if a majority of governmentowned industrial corporations pursued specific objectives that are different from those of their private competitors (e.g. employment policy, structural policy), possible differences in performance could be an indicator of the "price" that has to be paid for the different goal priority. As to what extent this "price" is caused by the specific goal orientation and/or by changing efficiency behavior induced by the property right structures is to be discussed later in the paper. In the long run, owing to restrictions in public expenditure, governmentowned large industrial corporations that compete in national and international markets must observe objectives that promote efficiency in production and sales, otherwise they cannot survive in a competitive world. The question, however, is whether government-owned industrial corporations have similar chances when pursuing such efficiency objectives as have their private competitors. 2. Property Rights Theory and the Performance of Government-owned and Privately-owned Industrial Corporations The implications of property rights theory for the theory of the firm have been elaborated in detail elsewhere 7. It has been shown that, from the standpoint of property rights theory, a public stock company (a so-called manager-controlled corporation) can be seen as an efficient alternative to an owner-controlled company. The division of ownership and control does not necessarily lead to a loss of performance; indeed, if competition in capital markets, markets for final goods and markets for managers is sufficient, no significant difference in performance between owner-controlled and manager-controlled companies can be found. The competitive forces in the above-mentioned markets serve as a surrogate for owner control 8. At the same time the public stock company is 6 For an assesment of this kind of sampling see BLANKART [1987, 53f.]. 7 E.g. ALCHIAN ; DEMSETZ ; ALCHlAN and DEMSETZ ; PICOT ; TIETZEL ; MEYER ; GAFGEN ; PICOT and MICHAELIS ; KAULMANN [1987a]. 8 E.g. ALCHlAN ; FURUBOTN and PmOVICH [1972, 1149 ft.]; RIDDER-AAB [1980, 70 ft.]; PIcOT ; DE ALESSI [1983,73 ft.]; DEMSETZ [1983,387 ft.]; LEIPOW [1983, 73 ff.]; ALCHIAN ; PICOT and MICHAELIS ; KAULMANN [1987 a, 33 ft.].
3 300 Arnold Picot and Thomas Kaulmann J]'ITIE enabled to raise the necessary capital in order to finance the growth of the corporation. Looking at the theoretical arguments as well as at the empirical studies of recent years 9, it can be concluded that manager-controlled and owner-controlled corporations form a relatively homogeneous group that can serve as a control group (private ownership) in a comparative investigation with government-owned corporations. It is necessary, however, to explore the structure of property rights of government-owned corporations in greater detail. The main property rights that influence the behavior of government-owned corporations are allocated as follows: the right to coordinate (to acquire and to allocate) resources is mainly in the hands of the managers of these corporations; the right to appropriation of profits (and losses) and the right to capitalization (to transfer all property rights to new owners) is in the hands of the government. Therefore, at first glance an attenuation of property rights can be concluded. In contrast to the group of privately-owned corporations where competitive market forces substitute for the division of property rights, in the government-owned case incentives for control on the side of the owners are much weaker; neither politicians nor the citizens that are represented by the government are directly affected by the appropriation of profits or losses by the government. The wealth of a private owner, however, is directly changed by losses incurred or profits earned by his firm. This is not the case for a politician who acts as an agent for the government nor for a citizen whose government owns a company. This indicates that government-owned corporations potentially offer many more degrees offreedom for the management of those companies than in the case of privately-owned companies. The larger room for discretion in government-owned corporations can be exploited by managers for other than economic goals. Incentives for control of management behavior on the side of the owners are much lower than in the case of privately-owned corporations. The monitoring effects of the markets for final products, for capital and for managers are less strong than in the case of private corporations. When a government-owned corporation does not pursue an effective business strategy, its economic position in final product markets is affected in the same way as in the case of privately-owned corporations. However, the consequences for discretionary behavior of the managers are different. The reason can be found in a lack of market signaling power if the corporation is owned by government: the final owners (citizens) cannot decide to sell their shares when the corpora- 9 The debate,on managerialism was triggered by BERLE and MEANS [19321; a recent assessment of this' debate is given in Journal o/law and Economics, vo!. 26, no. 2,1983. It is questionable whether differences in efficiency between manager-controlled and ownercontrolled corporations can be convincingly observed in reality, as is shown in contributions of the mentioned issue of Journal 0/ law and Economics as well as in a recent study of KAULMANN [1987b]. The latter publication shows that for 24 recent empirical studies only 7 find a higher profitability of owner-controlled companies. All the 11 studies carried out since 1976 do not show differences in profitability between the two groups.
4 145/2 (1989) Performance of Government- and Privately-owned Corporations 301 tion perfonns poorly. The same is true for politicians as agents of the final owners. Even if there is a private minority ownership in a government-owned company, the signaling of the capital market is weakened, since the financing of government-owned corporations differs from that of privately-owned corporations owing to the trust in the liquidity of state ownership in industrialized countries. In other words, there is the expectation that the government will come to the financial aid of a government-owned enterprise which faces severe financial difficulties - thus weakening the monitoring effects of the capital market. In the world of privately-owned corporations the threat of takeover of weakly perfonning corporations by third parties plays an important role for their efficient behavior. This threat does not exist in the case of government-owned corporations, as the privatization of such corporations depends not only on economic criteria but as well on diverse political factors. Hence, a declining level of efficiency will not increase the probability of a takeover and/or the probability of an exchange of management. Of course, in government-owned corporations too there is some competition for managerial positions. However, the competitive forces of the market for managers are different and weaker than in privately-owned corporations. As the control by politicians and owners is relatively weak and the pressure of the capital and final goods markets is not very strong, managers of governmentowned corporations will have more possibilities of hiring staff who are loyal to them and who at the same time do not necessarily show high perfonnance rates. Thus potential internal competition for managerial positions becomes weaker, especially given that the vertical control of managers by their subordinates is lessened 10. As a result, the market for managers does not monitor the management behavior of government-owned corporations to the same extent as in the case of privately-owned corporations; consequently, managers of governmentowned corporations can pursue personal goals to a larger extent. It is difficult to assess the difference in pecuniary incentive structures between privately- and government-owned corporations. It could be argued that the owners of a private corporation have higher motivation than the government to implement useful pecuniary incentive structures for the management. One of the very few empirical investigations in this field was undertaken by BOBEL and DIRRHEIMER . They found that only for two years of a 12-year sample was the share of the state ownership a significant influence on the remuneration of management - and even then the significance was not strong. Therefore, pecuniary incentives are more or less the same for managers in government- and in privately-owned corporations. 10 E.g. DE ALESSI [1974, 648].
5 302 Arnold Picot and Thomas Kaulmann J]IlTI'IE 3. Hypotheses Owing to greater scope for discretionary behavior, to lower incentives for control by politicians/owners and to weaker surrogates for private ownership, the following hypothesis may be formulated: H 1: Government-owned corporations show lower levels of productivity than privately-owned corporations. As relatively more input is necessary for government-owned corporations to fulfill their tasks, profits of these corporations will be lower: H 2: Government-owned corporations show lower rates of return than privatelyowned corporations. Owing to weaker signaling of capital markets for government-owned corporations and owing to different financing behavior, we postulate: H 3: The ratio of shareholders' equity to total assets is lower in governmentowned corporations than in privately-owned corporations. With reference to the control problems in government-owned corporations and the findings of WILL lam SON and JACQUEMIN and DEGHELLINCK 12 on correlation between size of the firm and profit, we conclude that an increase in firm size leads to a smaller increase in profits in the case of government-owned corporations than in the case of private corporations. The reason is that a larger number of employees leads to increased monitoring and control problems which are handled more efficiently by private firms. H 4: The increase in the size of firms leads to a smaller increase in profits in the case of government-owned corporations than in the case of private corporations. 4. Empirical Results 4.1. Source of Data and Operationaliation of Variables Fortune's "The Foreign 500" for the years form the data base for this investigation 13. Thus, the sample includes only large industrial companies. The data cover six western industrial nations (excluding USA and Japan) and fifteen 12 E.g. WrLLIAMsoN , JACQUEMIN and DEGHELLNICK . 13 The "Fortune Directory of the 500 Largest Industrial Corporations outside the V.S." is published each year in the August issue of Fortune Magazine. The "Foreign 500" list uses accounting concepts and data. There are likely to be differences between economic and accounting concepts. We assume that these measurement differences are randomly distributed and have an expected value of zero. For an appreciation ofthe use of accounting data in applied economic investigations, see e.g. FrscHER and McGowAN ; BENSTON ; SALAMON .
6 145/2 (1989) Performance of Government- and Privately-owned Corporations 303 industries in which government-owned corporations can be observed. The data allow us to control for the influence of important conditions (industry, country, and size) by statistical methods. Computations are made for a pooled sample covering the ten year period, that is, a combination of cross-sectional and longitudinal study 14. The group of government-owned corporations was formed by those companies that were indicated in the Fortune List as "government-owned" is. This means that the state holds a dominant share, in many cases one hundred percent of the company. Each year the qualification for government-owned or privately-owned was made anew, so that a company over the years can appear in both groups if in the meantime a nationalization or a privatization has taken place. All companies are industrial in the sense that more than futy percent of the sales derived from industrial production and/or mining. Size of the corporation was measured by several variables: - Sales: excluding excise taxes and customs duties; intracompany transactions are excluded, consolidated subsidiaries of more than fifty percent owned are included. Figures are shown in US dollars using an exchange rate that consists of the official average rate during each company's fiscal year; all figures in thousands of US dollars. - Total Assets: as at the end of a company's accounting year consolidated and converted into thousands of US dollars. - Employees: relating to those employees that cover the sales figure. Depending on the causal relationship under study, the size of a corporation is measured in the multivariate statistics by one or other of the measures described above. 14 See Appendices 1 and 2; in the pooled sample each event ail of the variable a of company i in the period t represents an observation. The sample was cleaned of some extreme cases (not contained in the five sigma-interval). Furthermore, for some observations specific information was missing, so that the number of cases included may vary from one computation to another. As to what extent the selection of the largest industrial corporations from the six countries and fifteen industries could represent a selection bias with respect to all corporations cannot be clarified within this contribution. An inclusion of Japan (no government-owned large corporations represented), an inclusion of industries without government-owned industrial corporations and an inclusion of the other countries of the Fortune 500 List has not changed the significant findings of this investigation. 15 The Fortune List only provides data on whether a corporation is privately- or government-owned. Other information is not available concerning the governments' participation in government-owned enterprises - such as the creation of incentives to reduce agency costs etc.
7 304 Arnold Picot and Thomas Kaulmann J}1I'IE For operationalization of other variables two further figures were listed: - Net Income: after taxes and extraordinary items (thousands of US dollars). - Stockholders Equity: minority interest not included; all figures at the end of each company's accounting year converted to dollars at the official exchange rate (thousands of US dollars). With these variables the following indicators for productivity can be deduced: sales - Productivity of labor employees - Productivity of capital = sales total assets. As measures for profitability the following ratios were computed: - Return on stockholders' equity - Return on total assets - Return on sales net income stockholders equity net income total assets net income sales. To control for special conditions, each company was allocated to an industrial classification according to its largest share of sales. A dummy variable was defined in order to represent the industry in regression analysis. A similar procedure was applied for the country variable 16. At first we use univariate analysis based on simple productivity and profitability ratios. This comparison of simple ratios is limited by the failure to take into account other influential variables, such as size and industry. The sample size is sufficient to enable us to undertake multivariate analysis so that we can determine the effect of size, industry and country, on the comparative performance of government and private corporations Univariate Analysis A test of H1 on the basis of simple productivity ratios shows that governmentowned companies on average demand higher factor inputs (employees, capital) 16 A control of the country and industry influence by dummy variables does not seem to be problematic because, as statistical analysis shows, multicollinearity that is possible in principle (in the form of high standard deviations of the estimated coefficients in the regression equations) does not show up.
8 145/2 (1989) Performance of Government- and Privately-owned Corporations 305 Private n "" Table 1. Average productivity ratios of government-owned and privately-owned industrial corporations Sales Employees Government n = Private n = Sales Total Assets Government n = tailed t-test of the means leads to a rejection of the null hypothesis with a level of significance of IX = 0.Q1. than their private counterparts. Thus, the null-hypothesis that both groups show similar productivity ratios must be rejected within a 2-tailed Hest 17 (Table 1). Lower productivity ratios of government-owned corporations may imply that these corporations show lower rates of return (H2). Average profitability ratios prove this assumption (Table 2). On the average, government-owned corporations incurred losses whereas privately-owned corporations yielded profits (the span of profit reaches from minus 3,890 million dollars to plus 1,378 million dollars). The t-test therefore shows a high level of significance. As can be seen from Table 3, government-owned companies show higher measures of size than their private counterparts so the differences outlined above could be due to size. Table 3 also shows that government-owned corporations, according to H3, have a lower ratio of shareholders' equity to total assets; again, the influence of size on this univariate result must be taken into account. Private n = Net Income Equity Table 2. Average profitablity ratios of government-owned and privately-owned corporations Government n = Private n = Net Income Total Assets Government n = Private n = Net income Sales Government n = ** 2-tailed t-test of the means leads to a rejection of the null hypothesis with a level of significance of IX = 0.Q1. 17 Nonparametric tests produced similar results for each of the hypotheses.
9 306 Arnold Picot and Thomas Kaulmann J]IJ'ITlE Table 3. Averages of size variables (sales, total assets, employees) and the ratio of equity to total assets for government-owned and privately-owned corporations Private Government Sales 3,119,705 4,631,614 ** Total assets 2,566,657 4,791,299 ** Employees 45,032 73,597 ** Equity Total assets **.. 2-tailed (-test of the means leads to a rejection of the null hypothesis with a level of significance of ex = Multivariate Analysis A linear regression model is the basis for the following multivariate analysis. Equations (1) and (2) are related to the test of Ht (1) meaning: SAL/E GOV ASSET LEVER NAT IND U SAL/E = ao + a 1 GOV + a2 ASSET + a 3 LEVER L b j NA1j + L ckindk + U; j= 1 k= 1 sales per employee; dummy variable for ownership ( = 1, if government-owned; = 0, if private); total assets; the ratio of total stockholder equity to total assets; dummy variable for country ( = 1, if corporation i in country j; otherwise = 0); dummy variable for industries ( = 1, if corporation i in industry k, otherwise = 0); error term with the usual assumptions (normal distributed, expected value = 0, constant variance = (12). The estimated coefficients 12 1, 12 2, 123 as well as the.corrected R2 and the F-value of the least square estimations are documented in Table 4; results for computations with and without industry-dummies are separately recorded. In both cases, the coefficient of the variable GOV indicating the difference between the two groups has a negative sign and differs significantly from zero. In the approach with country and industry dummies, the size of the corporation measured in terms of total assets is negatively correlated with the dependent variable. This means that the larger the corporation, the smaller the ratio of sales to employees.
10 145/2 (1989) Performance of Government- and Privately-owned Corporations 307 Table 4. Results of the regressions for sales per employee as dependent variable (standard deviation in brackets) GOV ASSET LEVER a 1 a 2 a 3 R2 F n Model without "'''' 1, industry dummies (15.74) ( ) (34.61) Model with ** "'''' 94.68" industry dummies (11.84) ( ) (30.49).. Coefficients in the 2-tailed t-test significantly different from zero with a level of significance of at = 0.01 Consideration of country and industry variables increases the value of R2 but does not influence significantly the coefficient of the GOV-variable. It can therefore be concluded that the lower ratio of SAL/E in large governmentowned corporations exists relatively independently of country and industry conditions. In a similar way the productivity measure "value of sales per $1 of assets" was explored in a multivariate approach: (2) where: SAL/A EMP SAL/A = ao + a 1 GOV + a 2 EMP + a 3 LEVER sales/total assets; employees; (for the other variables see above) L bj NA1j+ L ckindk + U j= 1 k= 1 Table 5 shows the results of this estimation. In this context, the coefficient that represents the difference between the two groups of large corporations (12 1 ) shows negative values that are significantly different from zero. The inclusion of industry and country variables partially reduces the influence of the ownership variable. However, the influence of ownership remains strongly significant. The hypothesis that privately-owned corporations show higher capital productivity than government-owned corporations can be corroborated on the basis of these results. The size variable EMP exerts a negative influence on the dependent variable SAL/A. Thus capital productivity decreases as the number of employees increases. This implies that there are limits to firm growth.
11 308 Arnold Picot and Thomas Kaulmann JJlI1TIE Table 5. Estimated coefficients for the dependent variable sales/total assets (standard deviations in brackets) GOV EMP LEVER 0, O R2 F Model without ** ** ** industry dummies (0.0500) ( ) (0.1150) Models with ** **0.7983** industry dummies (0.0496) ( ) (0.1363) n ** Coefficient in the 2-tailed I-test significantly different from zero with a significance level of ex = o.ot For the test ofhz similar multiple linear regression approaches were chosen: (3) (4) ROE = ao + a1 GOV + a2 SALES + a2 LEVER L bj NA'Ij + L Ck INDk + U j=1 k=1 ROA = ao + a1 GOV + a2 SALES + a3 LEVER where: ROE ROA SALES L bj NA'Ij + L Ck INDk + U j= 1 k= 1 Return on total stockholders equity; Return on total assets; total sales; (for the other variables see above). In this case, SALES was chosen as the size measure to avoid spurious correlation between the independent and the dependent variables. Table 6 represents the main estimation results of this multivariate regression analysis. Both measures of profitability are greater in privately-owned corporations. The influence of country and industry variables on the differences in profitability is rather weak. Government-owned corporations are throughout less profitable, the size of the corporations playing a minor role as can be seen from estimated a2-coefficients. As can be seen from coefficient a 3, a good equity endowment increases profitability in a significant way. Correlations between the ratio of stockholders equity to total assets and the dummy variable for government/private ownership could play a role in this context. This will be investigated in the following section, thereby testing at the same time H3 which postulates that the ratio of shareholders' equity to total assets is lower in governmentowned corporations.
12 145/2 (1989) Performance of Government- and Privately-owned Corporations 309 Table 6. Estimated coefficients of regressions for return on total stockholders' equity and on total assets as dependent variables (standard deviations in brackets) Dependent Variable: ROE GOV SALES LEVER a 1 az a 3 R Z F n Model without ** ** ** industry dummies (0.0186) ( ) (0.0405) Model with ** to- 9 ** ** industry dummies (0.0199) ( to- 9 ) (0.0506) Dependent variable: ROA Model without ** ' 10-1 * ** industry dummies (0.0084) ( ) (0.0076) Model with ** ** ** industry dummies (0.0035) ( ) (0.0097) ** Coefficient in the 2-tailed t-test significantly different from zero with a significance level of et: = 0.01; * with a significance level of et: = 0.05 Univariate results had shown that the equity endowment of privately-owned corporations is larger. This result must be investigated in more depth by multivariate methods. The approach contains ownership and industry variables, and sales is taken as the size variable. Results of the least squares estimation are shown in Table 7. Table 7. Estimated coefficients of regressions for total stockholders equity/total assets as dependent variable (standard deviation in brackets) GOV SALES a 1 az R2 F Model without ** to country-- and industry dummies (0.0102) ( to- 1O ) Model with to- 9 ** industry dummies (0.0087) ( ) ** Coefficient in the 2-tailed t-test significantly different from zero with a significance level of et: = O.ot n
13 310 Arnold Picot and Thomas Kaulmann JJTI'II'IE These results show that the two groups of ownership do not exert a significant influence on the endowment with equity if industry and country variables are taken into account. The respective coefficient d 1 in the approach with country and industry dummies is negative but does not differ significantly from zero. The estimation shows a negative influence of the size variable (SALES) on the ratio of total stockholders equity to total assets. A comparison between the two approaches (with and without country and industry variables) shows that the equity endowment seems to be a industry-specific phenomenon. The share of the explained variance of the dependent variable - expressed by R2 - was less in the approach without industry and country variables (0.03) than in the approach with country and industry variables (0.45). This remarkable increase and the disappearing influence of the ownership variable show a relatively high dependency of the ratio of equity to total assets on industry and country variables. H3 cannot be sustained with respect to these results. In order to prove H4 (size dependency of profits) the size measure EMP is chosen according to the contents of this hypothesis. The approach contains the net INCOME as dependent variable. In addition to the exogenous variables GOV, LEVER and EMP, this approach contains the interaction variable GOV. EMP whose coefficient a 2 represents the difference between the two groups of an increase in profit arising from a larger number of employees. 18 (5) INCOME = a o + a 1 GOV + a 2 GOV. EMP + a 3 EMP a4 LEV + L bj NA'1j + L Ck INDk + U j= 1 k= 1 Table 8 shows that the estimation of the coefficient for this multiplicative variable is negative and significantly different from zero. The difference between the coefficients a 3 and a 2 is negative. This means that the profit in governmentowned corporations is negative related to the size measured by employees. This is more than was expected in H4: it is not merely that an increase in size leads to a smaller increase in profits in the case of government-owned corporations, but that this size increase leads as well to a profit decrease in government-owned corporations. This means that in these corporations greater problems of monitoring exist due to higher numbers of employees, as was predicted in the theory. H4 is thereby empirically supported. 18 a 2 is defined as: d INCOME G d INCOMEp a - -:-::::-:-::=--..:: 2 - d EMP G d EMP p where the subscripts G = government-owned, and P = privately-owned.
14 145/2 (1989) Performance of Government- and Privately-owned Corporations 311 Table 8. Estimated coefficients of regression for net income as dependent variable (standard deviation in brackets) GOV GOV EMP LEVER EMP a l a 2 a 3 a 4 R2 F Model with ** ** ** industry dummies (17466) (0.1853) (0.0799) (31651) n 1740 ** Coefficients in the 2-tailed t-test significantly different from zero with a level of significance of IX = Discussion On the basis of empirical data from Fortune's foreign 500 list, four hypotheses derived from property rights theory and competition theory of the firm were tested. Simple comparison of the ratios of the two groups (government-owned corporations and privately-owned corporations) showed significant differences with respect to productivity, profitability and the ratio of shareholders' equity to total assets. Government-owned corporations were throughout less profitable and less productive; they showed a lower ratio of shareholders' equity to total assets. With the help of multivariate regression analysis, it was possible to control for several conditions, such as size of the corporations, country and industry variables. This approach corroborated the results for the productivity and profitability hypotheses (H1 and H2). However, H3 (lower ratio of shareholders' equity to total assets for government-owned corporations) could not be corroborated as the financial structure of the firms was mainly influenced by industry and country specifics. The increase of profits depending on the number of employees (H4) was significantly less in government-owned companies than in privately-owned corporations, as is predicted by theory. It can be argued that differences in performance should be attributed mainly to speciallabor market-oriented objectives of government economic policy with the aid of government-owned corporations. However, our results cannot prove such an assumption. The results of the productivity of capital, a measure that does not contain the number of employees, are as significant as the results of other measures of efficiency. Furthermore, it could be claimed that the higher endowment of personnel in government-owned corporations would lead to higher capital investments (offices, machinery etc.). However, especially in the sector of industrial manufacturing and mining, these effects should be overcompensated by other trends. This means that a lower employment rate in privately-owned corporations would
15 312 Arnold Picot and Thomas Kaulmann JJIJ'ITIE lead to a relatively higher capital investment in these companies and that, on the other hand, capital investment in government-owned corporations should be lower because of the more labor-intensive production technologies used with respect to labor market objectives. If the differences in performance could be traced back solely to public employment policy, there should be no lower capital productivity in government-owned than in privately-owned corporations. However, we could find a significant higher input of employees and of capital in government-owned corporations, i.e. an overall lower productivity. Thus the proposition outlined at the beginning of this paper has been supported: that is, disadvantages in performance of government-owned companies are mainly caused by the difference in the property rights structure. Future investigations should include additional possible determinants such as duration of government ownership, conditions of takeover by government (e.g. weak economic performance), intensity of competition in the respective industries, specific information about antitrust policy and government regulation in the respective countries, as well as dynamic aspects (e.g. growth rates); the latter aspect, however, poses some empirical difficulties as the influence of varying exchange rates is an obstacle to a longitudinal study with comparison of different periods. To sum up, the preceeding investigation offers the following conclusions: 1. The differences in performance between government-owned and privatelyowned large industrial corporations that property rights theory would predict are confirmed by empirical evidence, especially with respect to differences in productivity and profitability, but also with respect to size effects On the basis of our measures of performance, the following implication may be drawn: nationalization of industrial corporations may lead to long-term efficiency disadvantages (from the perspective of the individual firm); privatization is one option available to improve efficiency of government-owned enterprises. 3. An increase in the size (in terms of number of employees) of governmentowned corporations leads to lower increases in profit than the same increase in the size of a private firm because larger agency problems (i.e. monitoring costs etc.) arise in government corporations. 4. The findings can form the foundation for an economic policy offering a trade-off between corporate performance of different forms of ownership, on the one hand, and possible fulfillment of other goals through government-owned enterprises, on the other hand. However, according to our current knowledge, it is not at all clear whether and to what extent industrial corporations which are owned by government are able to fulfill additional goals in structural policy and labor market policy, and it is unclear how such consequences could be empirically measured. 19 To that extent, this study complements the various existing empirical studies that test the property rights approach. See for reviews e.g. DE ALESSI  and KAULMANN [1987 a].
16 145/2 (1989) Performance of Government- and Privately-owned Corporations 313 Summary As predicted by property rights theory, the empirical evidence presented in this article confirms that privately-owned large industrial corporations exhibit superior performance compared with their government-owned counterparts, especially with respect to productivity and profitability (even after accounting for size, industry and country effects). The database comprises Fortune's "The Foreign 500" for the years The sample is drawn from six countries and fifteen industries, and it is exclusively confined to corporations that act in unregulated markets (i.e. state monopolies are excluded). The study uses univariate and multivariate statistical techniques. ZusammenJassung Mit Hilfe der Theorie der Verfiigungsrechte und der Wettbewerbstheorie wird die Aussage abgeleitet, dab private industrielle GroBunternehmungen effizienter als vergleichbare Unternehmungen in Staatseigentum arbeiten. Der vorliegende Beitrag findet dieses Ergebnis besonders hinsichtlich der ProduktiviHiten und Rentabilitiiten empirisch bestiitigt. In der Untersuchung werden neben univariaten Vergleichen multivariate statistische Analysen durchgefiihrt, die den EinfluB der UnternehmungsgroBe sowie die Branchen- und Liinderzugehorigkeit kontrollieren. In der Stichprobe aus Fortune's "The Foreign 500" der lahre sind keine staatlichen Monopole enthalten, sondern (neben Privatunternehmungen) nur solche industrielle GroBunternehmungen in Staatseigentum, die mit vergleichbaren privaten Unternehmungen im Wettbewerb stehen. Appendix f. Distribution of the sample by country according to ownership Country Government Private Great Britain Canada France Germany Italy Sweden Total
17 314 Arnold Picot and Thomas Kaulmann JJIT1I'1E Appendix 2. Distribution of the sample by industry according to ownership Industry Government Private Building materials 4 76 Chemicals Electronics, appl Ind., transportation equ Metal products Metal man.-steel Mining nonferrous 8 27 Mining coal Petroleum Tobacco 9 56 Shipbuilding 13 6 Office equipment, computer 3 76 Motor vehicles Metal man., aluminium Aerospace Total References ALCHIAN, A. A. , "The Basis of Some Recent Advances in the Theory of the Management of the Firm", Journal of Industrial Economics, 14, , "Corporate Management and Property Rights", pp , in: Manne, H. (ed.), Economic Policy and the Regulation of Corporate Securities, Washington D.C. , "Specifity, Specialization and Coalitions", Zeitschrift for die gesamte Staatswissenschaft, 140, ALCHIAN, A. A. and DEMsETz, H. , "The Property Rights Paradigm", Journal of Economic History, 33, BENSTON, O. J. , "The Validity of Profits-Structure Studies with Particular Reference to the FTC's Line of Business Data", American Economic Review, 75, BERLE, A. A. and MEANS, O. C. , The Modern Corporation and Private Property, New York. BLANKART, C. B. , "Ordnungspolitische Rahmenbedingungen und offentliche Untemehmertiitigkeit: Soll der Staat industrielles Beteiligungskapital halten?", pp , in: Thiemeyer, T (ed.), Ojfentliche Unternehmen und okonomische Theorie, Baden-Baden. BOBEL, I. , Wettbewerb und Industriestruktur -Industrial Organization - Forschung im tlberblick, Berlin. BOBEL, I. and DIRRHEIMER, M. , "Eigentumsrechte, Managementmotivation und Marktverhalten", pp , in: Neumann, M. (ed.), Anspriiche, Eigentums- und Verfogungsrechte, Berlin. BoRCHERDING, T. E., POMMEREHNE, W, and SCHNEIDER, F. , "Comparing the Efficiency of Private and Public Production: The Evidence from Five Countries", pp , in: Bos, D., Musgrave, R. A. and Wiseman, J. (eds.), Public Production, Zeitschrift for NationalOkonomie, Supplementum 2, Vienna and New York.
18 145/2 (1989) Performance of Government- and Privately-owned Corporations 315 BUTLER, E. , "Privatisierung - Britanniens Botschaft", Wirtschaftswoche, 40, to, DE ALESSI, L. , "Managerial Tenure under Private and Government Ownership in the Electric Power Industry", Journal of Political Economy, 82, , "The Economics of Property Rights: A Review of the Evidence", Research of Law and Economics, 2, , "Property Rights, Transaction Costs, and X-Efficiency: An Essay in Economic Theory", American Economic Review, 73, DEMSETZ, H. , "Toward a Theory of Property Rights", American Economic Review, 57, , "The Structure of Ownership and the Theory of the Firm", Journal of Law and Economics, 26, FISCHER, F. M. and McGowAN, , "On the Misuse of Accounting Rates of Return to Later Monopoly Profits", American Economic Review, 73, FURUBOTN, E. G. and PEJOVICH, S. , "Property Rights and Economic Theory: A Survey of Recent Literature", Journal of Economic Literature, 10, GAFGEN, G. , "Entwicklung und Stand der Theorie der Property Rights: Eine kritische Bestandsaufnahme", pp , in: Neumann, M, (ed.), Anspriiche, Eigentums- und Verfogungsrechte, Berlin. JACQUEMIN, A. and DEGHELLINCK, E. , "Familial Control, Size and Performance in the Largest French Firms", European Economic Review, 13, KAuLMANN, T. [1987 a], Property Rights und Unternehmungstheorie - Stand und Weiterentwicklung der empirischen Forschung, Miinchen. [1987b], "Managerialism versus the Property Rights Theory of the Firm", pp , in: Bamberg, G. and Spremann, K. (eds.), Agency Theory, Information and Incentives, Berlin, Heidelberg, New York. LEIPOLD, H. , Eigentum und wirtschaftlich-technischer Forschritt, Cologne. ME)'ER, W , "Entwicklung und Bedeutung des Property Rights-Ansatzes in der NationaI6konomie", pp. 1-44, in: Schiiller, A. (ed.), Property Rights und okonomische Theorie, Miinchen. PICOT, A. , "Der Beitrag der Theorie der Verfiigungsrechte zur 6konomischen Analyse von Unternehmungsverfassungen", pp , in: Bohr, K., Drukarczyk, 1., Drumm, H. 1. and Scherrer, G. (eds.), Unternehmungsverfassung als Problem der Betriebswirtschaftslehre, Berlin. , "Verfiigungsrechte und Wettbewerb als Determinanten der Entwicklung des Verwaltungsbereichs von Organisationen", pp , in: Boettcher, E..' Herder Dorneich, P. and Schenk, K. E. (eds.), Jahrbuch for Neue Politische Okonomie, vo!. 3, Tiibingen. PICOT A. and KAULMANN, T. , "Industrielle GroBunternehmen in Staatseigentum aus verfiigungsrechtlicher Sicht", Zeitschrift for betriebswirtschaftliche Forschung, 37, PICOT, A. and MICHAELIS, E. , "Verteilung von Verfiigungsrechten in GroBunternehmen und Unternehmungsverfassung", Zeitschriftfor Betriebswirtschaft, 54, RIDDER-AAB, C. M. , Die moderne Aktiengesellschaft im Lichte der Theorie der Eigentumsrechte, Frankfurt and New York. SALAMON, G. L. , "Accounting Rates of Return", American Economic Review, 75, SLAVICH, D M. , "Grassroots Privatization - The Management Challenge", Sloan Management Review, 28, TIETZEL, M. , "Die Okonomie der Property Rights: Ein Uberblick", Zeitschriftfor Wirtschaftspolitik, 30,
19 316 Arnold Picot and Thomas Kaulmann J}IllJ'IE WILLIAMSON, O. E. , "Hierarchial Control and Optimum Firm Size", Journal of Political Economy, 75, WIRTSCHAFTSWOCHE , "Frankreich - Stumpfe Speerspitze", 39, 6, Professor Dr. Arnold Picot Dr. Thomas Kaulmann Institut for Organisation Universitiit Miinchen Ludwigstr. 28 D-8000 Miinchen 22 Bundesrepublik Deutschland
The Determinants and the Value of Cash Holdings: Evidence from French firms Khaoula SADDOUR Cahier de recherche n 2006-6 Abstract: This paper investigates the determinants of the cash holdings of French
An Empirical Analysis of Insider Rates vs. Outsider Rates in Bank Lending Lamont Black* Indiana University Federal Reserve Board of Governors November 2006 ABSTRACT: This paper analyzes empirically the
King Saud University College of Administrative Science Department of Accounting 2 nd Semester, 1426-1427 Accounting for Multiple Entities Chapter 15 Prepared By: Eman Al-Aqeel Professor : Dr: Amal Fouda
CHAPTER 11: ARBITRAGE PRICING THEORY 1. The revised estimate of the expected rate of return on the stock would be the old estimate plus the sum of the products of the unexpected change in each factor times
DETERMINANTS OF PROFITABILITY UNDERLINING THE WORKING CAPITAL MANAGEMENT AND COST STRUCTURE OF SRI LANKAN COMPANIES Prabath Suranga Morawakage Graduate of B.B. Mgt (Finance) Special 356,Doranagoda,Bemmulla,Sri
1 THE EFFECT OF FINANCIAL PERFORMANCE FOLLOWING MERGERS AND ACQUISITIONS ON FIRM VALUE Edwin Yonathan, Universitas Indonesia Ancella A. Hermawan, Universitas Indonesia 2 THE EFFECT OF FINANCIAL PERFORMANCE
What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? HOCK international - 2004 1 HOCK international - 2004 2 How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? HOCK
LTA 2/03 P. 197 212 P. JOAKIM WESTERHOLM and MIKAEL KUUSKOSKI Do Direct Stock Market Investments Outperform Mutual Funds? A Study of Finnish Retail Investors and Mutual Funds 1 ABSTRACT Earlier studies
1) Introduction Marketing Mix Modelling and Big Data P. M Cain Big data is generally defined in terms of the volume and variety of structured and unstructured information. Whereas structured data is stored
"A survey of the Private Health Insurance in Germany" Rainer Fürhaupter, Claudia Brechtmann Germany Summary The paper deals with the main actuarial principles on which the calculation of premiums in the
International Journal of Humanities and Social Science Vol. 5, No. 1; January 2015 The Effect of Capital Structure on the Financial Performance of Small and Medium Enterprises in Thika Sub-County, Kenya
Journal of Modern Accounting and Auditing, ISSN 1548-6583 November 2012, Vol. 8, No. 11, 1601-1610 D DAVID PUBLISHING The Accounting and Economic Effects of Currency Translation Standards: AASB 1012 vs.
Is the Forward Exchange Rate a Useful Indicator of the Future Exchange Rate? Emily Polito, Trinity College In the past two decades, there have been many empirical studies both in support of and opposing
Journal Of Financial And Strategic Decisions Volume 11 Number 1 Spring 1998 AN EMPIRICAL STUDY OF THE IMPACT OF FOREIGN OWNERSHIP ON THE VALUES OF U.S. COMMERCIAL PROPERTIES Arnold L. Redman * and N. S.
WHAT IS CAPITAL BUDGETING? Capital budgeting is a required managerial tool. One duty of a financial manager is to choose investments with satisfactory cash flows and rates of return. Therefore, a financial
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Factors in Business Investment Volume Author/Editor: Robert Eisner Volume Publisher: NBER
Journal of Economics and Behavioral Studies Vol. 7, No. 3, pp. 104-109, June 2015 (ISSN: 2220-6140) The Influence of Working Capital and Organization on the Financial Performance of Small-Sized Enterprises
Asian Economic and Financial Review journal homepage: http://www.aessweb.com/journals/5002 THE CAPITAL INVESTMENT INCREASES AND STOCK RETURNS Jung Fang Liu 1 --- Nicholas Rueilin Lee 2 * --- Yih-Bey Lin
The Equity Premium in India Rajnish Mehra University of California, Santa Barbara and National Bureau of Economic Research January 06 Prepared for the Oxford Companion to Economics in India edited by Kaushik
Dividend Payout and Executive Compensation in US Firms Nalinaksha Bhattacharyya 1 I.H.Asper School of Business University of Manitoba 181 Freedman Crescent Winnipeg, MB R3T 5V4 Tel: (204) 474-6774 Fax:
Running Head: HUMAN RESOURCE PRACTICES AND ENTERPRISE PERFORMANCE Human Resource Practices and Enterprise Performance in Small and Medium Enterprises of Pakistan Muzaffar Asad Syed Hussain Haider Muhammad
Chapter 7: Capital Structure: An Overview of the Financing Decision 1. Income bonds are similar to preferred stock in several ways. Payment of interest on income bonds depends on the availability of sufficient
TECHNOLOGICAL CHANGE Firm and Product Life Cycles and Firm Survival By RAJSHREE AGARWAL AND MICHAEL GORT* On average, roughly 5 10 percent of the firms in a given market leave that market over the span
2014 Vol. 4 (S4), pp. 24482455/Parvin and Mehrdad STUDY THE RELATIONSHIP BETWEEN INVESTMENT OPPORTUNITIES AND EARNINGS STABILITY OF FIRMS IN TEHRAN SECURITIES EXCHANGE Parvin Nafei 1, 2 and *Mehrdad Ghanbari
Multiple regression Introduction Multiple regression is a logical extension of the principles of simple linear regression to situations in which there are several predictor variables. For instance if we
Research Journal of Recent Sciences ISSN 2277-252 Res.J.Recent Sci. The Relationship between Return on Equity and Investment Opportunities of the Firms Listed in Tehran Stock Exchange Davood Hassanpoor
Fulfilling the core market research educational needs of individuals and companies worldwide Presented through a unique partnership between How to Contact Us: Phone: +1-706-542-3537 or 1-800-811-6640 (USA
Journal Of Financial And Strategic Decisions Volume 9 Number 2 Summer 1996 THE USE OF FINANCIAL RATIOS AS MEASURES OF RISK IN THE DETERMINATION OF THE BID-ASK SPREAD Huldah A. Ryan * Abstract The effect
Working Capital Management & Financial Performance of Manufacturing Sector in Sri Lanka J. Aloy Niresh email@example.com Abstract Working capital management is considered to be a crucial element in determining
Purchase Conversions and Attribution Modeling in Online Advertising: An Empirical Investigation Author: TAHIR NISAR - Email: firstname.lastname@example.org University: SOUTHAMPTON UNIVERSITY BUSINESS SCHOOL Track:
Chapter 5: Business Valuation (Market Approach) This methodology values larger companies based upon the value of similar publicly traded For smaller companies, otherwise known as micro businesses (e.g.,
Good Corporate Governance pays off! Well-governed companies perform better on the stock market Institutional investors are thus encouraged to account for corporate governance in their investment strategy.
Social Security Eligibility and the Labor Supply of Elderly Immigrants George J. Borjas Harvard University and National Bureau of Economic Research Updated for the 9th Annual Joint Conference of the Retirement
Premaster Statistics Tutorial 4 Full solutions Regression analysis Q1 (based on Doane & Seward, 4/E, 12.7) a. Interpret the slope of the fitted regression = 125,000 + 150. b. What is the prediction for
Vol. 4, No.4, October 2014, pp. 272 279 E-ISSN: 2225-8329, P-ISSN: 2308-0337 2014 HRMARS www.hrmars.com Capital Structure and Financial Performance: Evidence from Sugar Industry in Karachi Stock Exchange
Statistical Analysis on Relation between Workers Information Security Awareness and the Behaviors in Japan Toshihiko Takemura Kansai University This paper discusses the relationship between information
THE EFFECT OF LONG TERM LOAN ON FIRM PERFORMANCE IN KENYA: A SURVEY OF SELECTED SUGAR MANUFACTURING FIRMS Isabwa Kajirwa Harwood Department of Business Management, School of Business and Management sciences,
Pak J Commer Soc Sci Pakistan Journal of Commerce and Social Sciences 2013, Vol. 7 (1), 19-26 The Effect of Management Entrenchment on the Equity Capital in Iran Somayeh Baratiyan Accounting Department,
An Analysis of the Effect of Income on Life Insurance Justin Bryan Austin Proctor Kathryn Stoklosa 1 Abstract This paper aims to analyze the relationship between the gross national income per capita and
Measuring Financial Performance: A Critical Key to Managing Risk Dr. Laurence M. Crane Director of Education and Training National Crop Insurance Services, Inc. The essence of managing risk is making good
Contemporary Management Research Pages 93-106, Vol. 5, No. 1, March 2009 CEO Compensation and US High-tech and Low-tech Firms Corporate Performance Eunsup Daniel Shim Sacred Heart University E-Mail: email@example.com
The Life-Cycle Motive and Money Demand: Further Evidence Jan Tin Commerce Department Abstract This study takes a closer look at the relationship between money demand and the life-cycle motive using panel
ECON4510 Finance Theory Lecture 7 Diderik Lund Department of Economics University of Oslo 11 March 2015 Diderik Lund, Dept. of Economics, UiO ECON4510 Lecture 7 11 March 2015 1 / 24 Market efficiency Market
Is there Information Content in Insider Trades in the Singapore Exchange? Wong Kie Ann a, John M. Sequeira a and Michael McAleer b a Department of Finance and Accounting, National University of Singapore
Journal Of Financial And Strategic Decisions Volume 9 Number 3 Fall 1996 DOES 12B-1 PLAN OFFER ECONOMIC VALUE TO SHAREHOLDERS OF MUTUAL FUNDS? Spuma M. Rao * Abstract A total of 964 mutual funds were analyzed
SUMMARY CURRENCY-HEDGED INTERNATIONAL FIXED INCOME INVESTMENT In recent years, the management of risk in internationally diversified bond portfolios held by U.S. investors has been guided by the following
Check against delivery Hans Dieter Pötsch Speech at the Annual Media Conference and Investor Conference on March 13, 2014 Part II Good morning, Ladies and Gentlemen, I, too, would like to wish you a very
THE EFFECT OF R&D EXPENDITURE (INVESTMENTS) ON FIRM VALUE: CASE OF ISTANBUL STOCK EXCHANGE Pinar Başgoze 1, H. Cem Sayin 2 1 Hacettepe University, Department of Business Administration, Ankara, Turkey.
Implied Volatility Skews in the Foreign Exchange Market Empirical Evidence from JPY and GBP: 1997-2002 The Leonard N. Stern School of Business Glucksman Institute for Research in Securities Markets Faculty
ISSN 1479-3889 (print), 1479-3897 (online) International Journal of Nonlinear Science Vol.3(2007) No.3,pp.208-212 An Empirical Study of Influential Factors of Debt Financing Jing Wu School of Management,
International Journal of Theoretical and Applied Finance Vol. 7, No. 2 (2004) 121 133 c World Scientific Publishing Company DIVIDEND POLICY, TRADING CHARACTERISTICS AND SHARE PRICES: EMPIRICAL EVIDENCE
International Research Journal of Applied and Basic Sciences 203 Available online at www.irjabs.com ISSN 225-838X / Vol, 6 (): 63-68 Science Explorer Publications A survey of value relevance of the consolidate
This is a working draft of a Chapter of the Practical Manual on Transfer Pricing for Developing Countries and should not at this stage be regarded as necessarily reflecting finalised views of the UN Committee
Accounts receivable management and the factoring option: Evidence from a bank-based economy Thomas Hartmann-Wendels Alwin Stöter Abstract: We analyze a firm s decision of whether to manage trade credits
Journal Of Financial And Strategic Decisions Volume 9 Number 2 Summer 1996 THE ROLE OF INSIDERS AND DIVIDEND POLICY: A COMPARISON OF REGULATED AND UNREGULATED FIRMS M. Cary Collins *, Atul K. Saxena **
Economic Value Added in the Hong Kong Listed Companies: A Preliminary Evidence V.I. Tian a, E.Y.L. Keung a and Y.F. Chow a a Department of Finance, The Chinese University of Hong Kong, Hong Kong. Abstract:
WACC and a Generalized Tax Code Sven Husmann, Lutz Kruschwitz and Andreas Löffler version from 10/06/2001 ISSN 0949 9962 Abstract We extend the WACC approach to a tax system having a firm income tax and
Economic Issues, Vol. 10, Part 2, 2005 Do Currency Unions Affect Foreign Direct Investment? Evidence from US FDI Flows into the European Union Kyriacos Aristotelous 1 ABSTRACT This paper investigates the
Paper to be presented at DRUID15, Rome, June 15-17, 2015 (Coorganized with LUISS) THE INTERPLAY OF INBOUND AND OUTBOUND INNOVATION AND ITS IMPACT ON FIRM GROWTH Roberto Camerani University of Sussex SPRU
ASA University Review, Vol. 5 No. 1, January June, 2011 Working Capital Management and Profitability: A Study on Textiles Mohammad Morshedur Rahman * Abstract Textiles plays a vital role in the socio-economic
Five Myths of Active Portfolio Management Most active managers are skilled. Jonathan B. Berk Proponents of efficient markets argue that it is impossible to beat the market consistently. In support of their
Impact of Diversification Strategy on the Capital Structure Decisions of Manufacturing Firms in India Ranjitha Ajay and R Madhumathi Indian Institute of Technology Madras, Chennai Abstract. Indian corporate
International Journal of Economics, Commerce and Management United Kingdom Vol. III, Issue 11, November 2015 http://ijecm.co.uk/ ISSN 2348 0386 THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT AND DIVIDEND
I. INTRODUCTION Informational Content of Trading Volume and Open Interest An Empirical Study of Stock Option Market In India Sandeep Srivastava Over the past three decades, option contract defined as a
Corporate Governance Remuneration of the Executive and Non-executive Members of the Board 77 Remuneration of the Executive and Non-executive Members of the Board Tables Summarizing the Remuneration and
1 Business and Economics Journal, Volume 2010: BEJ-7 An Empirical Analysis of Determinants of Commercial and Industrial Electricity Consumption Richard J Cebula*, Nate Herder 1 *BJ Walker/Wachovia Professor
CHAPTER 8 Investments in Equity Securities SYNOPSIS In this chapter, the author discusses investments in equity securities. The discussion is divided into equity securities classified as current and long-term
76 its impact on profitability: A study of selected listed manufacturing companies in Sri Lanka Abstract: cance, which means that as the cash conversion cycle increases ROA decreases. Keywords: Working
Impact of Firm Specific Factors on the Stock Prices: A Case Study on Listed Manufacturing Companies in Colombo Stock Exchange. Abstract: Ms. Sujeewa Kodithuwakku Department of Business Finance, Faculty
Determinants of Stock Market Performance in Pakistan Mehwish Zafar Sr. Lecturer Bahria University, Karachi campus Abstract Stock market performance, economic and political condition of a country is interrelated
Chapter 3 Local Marketing in Practice 3.1 Introduction In this chapter, we examine how local marketing is applied in Dutch supermarkets. We describe the research design in Section 3.1 and present the results
Why are Some Diversified U.S. Equity unds Less Diversified Than Others? A Study on the Industry Concentration of Mutual unds Binying Liu Advisor: Matthew C. Harding Department of Economics Stanford University
Effect of working capital and financial decision making management on profitability of listed companies in Tehran s securities exchange Masoomeh Shahnazi 2 (Shahnazi1393@gmail.com) Keyhan Azadi 1 (Ka.cpa2012yahoo.com)
Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Chapter 8 Capital Budgeting Concept Check 8.1 1. What is the difference between independent and mutually
Abstract WORKING CAPITAL MANAGEMENT AND PROFITABILITY: EVIDENCE FROM PAKISTAN FIRMS Ahsen Saghir Faculty Member of APCOMS, Rawalpindi Muhammad Ali Jinnah University, Islamabad Faisal Mehmood Hashmi Muhammad
Corporate Tax Planning and Debt Endogeneity: Case of American Firms Dr. Mohamed Ali ZARAI Associate Professor of Accounting, Al- Baha University, KSA Faculty of Administrative and Financial Sciences Zaraimedali@yahoo.fr
Capital Structure of Non-life Insurance Firms in Japan Applied Economics and Finance Vol. 3, No. 3; August 2016 ISSN 2332-7294 E-ISSN 2332-7308 Published by Redfame Publishing URL: http://aef.redfame.com
Simple Linear Regression Inference 1 Inference requirements The Normality assumption of the stochastic term e is needed for inference even if it is not a OLS requirement. Therefore we have: Interpretation
RIVIER ACADEMIC JOURNAL, VOLUME 3, NUMBER 2, FALL 2007 AN ANALYSIS OF WORKING CAPITAL MANAGEMENT EFFICIENCY IN TELECOMMUNICATION EQUIPMENT INDUSTRY Vedavinayagam Ganesan * Graduate Student, EMBA Program,
124 Accounting Standard (AS) 12 Accounting for Government Grants Contents INTRODUCTION Paragraphs 1-3 Definitions 3 EXPLANATION 4-12 Accounting Treatment of Government Grants 5-11 Capital Approach versus
277 CHAPTER VI COMPARISONS OF CUSTOMER LOYALTY: PUBLIC & PRIVATE INSURANCE COMPANIES. This chapter contains a full discussion of customer loyalty comparisons between private and public insurance companies
Price to Book Value Ratio and Financial Statement Variables (An Empirical Study of Companies Quoted At Nairobi Securities Exchange, Kenya) 1 Kenneth Marangu & 2 Ambrose Jagongo (PhD) 1* Corresponding Author
A Primer on Forecasting Business Performance There are two common approaches to forecasting: qualitative and quantitative. Qualitative forecasting methods are important when historical data is not available.
Chapter 2 Background 2.1 Merger and Acquisition Motivation A number of explanations have been proposed to explain why merger and acquisition occur. Berkovitch and Narayanan (1993) suggest that motivations
Asian Economic and Financial Review ISSN(e): 2222-6737/ISSN(p): 2305-2147 journal homepage: http://www.aessweb.com/journals/5002 DETERMINANTS OF THE AUD/USD EXCHANGE RATE AND POLICY IMPLICATIONS Yu Hsing
STATISTICAL ANALYSIS OF UBC FACULTY SALARIES: INVESTIGATION OF DIFFERENCES DUE TO SEX OR VISIBLE MINORITY STATUS. Oxana Marmer and Walter Sudmant, UBC Planning and Institutional Research SUMMARY This paper
THE ACCOUNTING REVIEW Vol. 81, No. 3 2006 pp. 617 652 Discretionary Accruals and Earnings Management: An Analysis of Pseudo Earnings Targets Benjamin C. Ayers University of Georgia John (Xuefeng) Jiang
ISSN 1611-616X VULKAN-VERLAG ESSEN 2 2010 HEAT PROCESSING INTERNATIONAL MAGAZINE FOR INDUSTRIAL FURNACES HEAT TREATMENT PLANTS EQUIPMENT http://www.heatprocessing-online.com Business ratios and their basic
Your consent to our cookies if you continue to use this website.