The Influence of State Ownership on the Economic Performance of Korean Public Companies
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
The property rights and agency cost theory of enterprises suggests that public ownership should perform less efficiently and profitably than private ownership. However, the existing empirical evidence provides weak support for this hypothesis. Numerous studies of Western capital markets and Chinese state enterprises have examined the relationship between ownership structure and performance. Agency theory suggests that when owners do not manage a firm themselves, a conflict of interest arises between the owners (principals) and managers (agents). Researchers have argued that government ownership is inferior to private ownership in competitive markets because it prioritizes social and political goals over value maximization, hiring decisions are often based on political influence rather than ability, and higher transaction costs are involved. This study investigated the influence of two factors, listing on the Korea Exchange and degree of state ownership, on performance using annual data for 51 companies in Korea for 1999-2009. We found that, on average, performance (measured by productivity, profitability, and efficiency) was positively influenced by public listing and negatively influenced by the degree of state ownership.
Abstract
The property rights and agency cost theory of enterprises suggests that public ownership should perform less efficiently and profitably than private ownership. However, the existing empirical evidence provides weak support for this hypothesis. Numerous studies of Western capital markets and Chinese state enterprises have examined the relationship between ownership structure and performance. Agency theory suggests that when owners do not manage a firm themselves, a conflict of interest arises between the owners (principals) and managers (agents). Researchers have argued that government ownership is inferior to private ownership in competitive markets because it prioritizes social and political goals over value maximization, hiring decisions are often based on political influence rather than ability, and higher transaction costs are involved. This study investigated the influence of two factors, listing on the Korea Exchange and degree of state ownership, on performance using annual data for 51 companies in Korea for 1999-2009. We found that, on average, performance (measured by productivity, profitability, and efficiency) was positively influenced by public listing and negatively influenced by the degree of state ownership.
참고문헌 (11)
- Boardman, A. E., "Ownership and performance in competitive environments: A comparison of the performance of private, mixed, and stateowned enterprises", Journal of Law and Economies, 32(1) (1989)
- Colander, D. C., "Neoclassical political economy: The analysis of rent-seeking and DUP activities" (1984), Ballinger
- Gunasekarage, A., "The influence of the degree of state ownership and the ownership concentration on the performance of listed Chinese companies", Research in International Business and Finance, 21(3), pp.379~395 (2007)
- Jefferson, G. Z., "Ownership, performance, and innovation in China’s large- and medium-size industrial enterprise sector", China Economic Review, 14(1), pp.89~113 (2003)
- Park, K., "A study on the privatization index" (2010), Korea Institute of Public Finance
- Sun, Q, "China share issue privatization: the extent of its success", Journal of Financial Economics, 70(2), pp.183~222 (2003)
- Vining, A. R., "Ownership versus competition: Efficiency in public enterprises", Public Choice, 73(2) (1992)
- Williamson, O. E., "The theory of the firm as governance structure: From choice to contract", Journal of Economic Perspectives, 13(3), pp.171~195 (2002)
- Yarrow, G. K, "Privatization: critical perspectives on the world economy" (1996), Routledge
- Yoon, S., "Public enterprises" (1998), Bakyoungsa
- Zuobao, W., "Ownership and performance in Chinese manufacturing industry", Journal of Multinational Financial Management, 12 (2002)