A Comprehensive Research on Indonesian State-owned Enterprises: Strategies, Privatization, Strategic Leadership, Governance, and Performance

Prabowo, Muhammad Agung and Untoro, Wisnu and Trinugroho, Irwan (2012) A Comprehensive Research on Indonesian State-owned Enterprises: Strategies, Privatization, Strategic Leadership, Governance, and Performance. .

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    Abstract

    In the first year, this study focuses on the efficiency and performance of SOEs compared to their private-owned counterparts. We have three empirical researches for the first years. Firstly, we analyze the efficiency difference, measured by labor surplus and employee productivity, between partially privatized (publicly traded) SOEs and private owned enterprises (POEs) for non-financial firms. We find that partially privatized Indonesian SOEs have higher employee productivity than that of their private owned counterparts. No difference of labor surplus is found between state-owned and private-owned firms. Secondly, we examine the accounting performance difference, measured by return on investment and profit margin, between partially privatized SOEs and POEs for non-financial firms. We interestingly find that government ownership of firms lead to a higher accounting performance measured by the ratio of return on assets and the profit margin ratio. Thirdly, we investigate the policy burdens that could be considered as a source of firm inefficiency, measured by employee burden (wage surplus) and small scale loans burden, of Indonesian regional government banks or regional development banks as a form of state owned enterprises as well. We find that regional government banks have more employee burden and small scale loans burden than other banks. Furthermore, we document that excessive employees in the regional development banks are positively associated with the degree of poverty in their regions and negatively related to the regional economic capacity. In the regions with high degree of poverty, those banks have to channel excessive small scale loans.

    Item Type: Article
    Subjects: H Social Sciences > HB Economic Theory
    Divisions: Fakultas Ekonomi
    Depositing User: Lynda Rahmawati
    Date Deposited: 17 Apr 2014 21:48
    Last Modified: 17 Apr 2014 21:48
    URI: https://eprints.uns.ac.id/id/eprint/11790

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