 Does ownership matter? Empirical evidence from the performance of Indian state and private coal mining companiesMeenakshi Parida and S. Madheswaran Resources Policy, 2021, vol. 74, issue C Abstract: This paper empirically investigates the effects of ownership in the Indian coal mining industry. It aims to examine whether there are efficiency and performance differentials between the state owned coal companies (SCCs) and privately owned coal companies (PCCs). We use a comprehensive dataset of 33 coal mining companies, comprising both publicly and privately owned firms existing in India over the period 2000–2016 to investigate whether ownership matters in economic terms, i.e. whether the state owned or privately owned coal mining companies show superior efficiency and performance. Using a multivariate panel data regression analysis it is shown that SCCs significantly underperform the private sector in terms of output efficiency and profitability. The reasons for this underperformance could be attributable to lack of technological upgradation, manpower skill deficiency, lack of incentivization and inadequate infrastructural facilities. Overall, this paper suggests to find out a middle path between economic outcome and socio-political considerations as political preference for state coal can become unviable from cost efficiency point of view. Keywords: State ownership; Coal mining; Efficiency; Panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:74:y:2021:i:c:s0301420721003974 DOI: 10.1016/j.resourpol.2021.102388 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
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