Corporate governance, privatisation, and financial performance of Indonesian state-owned enterprises

Nurharjanto, Tulus Haryono, Djoko Suhardjanto, Niki Lukviarman and Erna Setiany

International Journal of Revenue Management, 2018, vol. 10, issue 2, 168-188

Abstract: This study aimed to investigate the effect of corporate governance (CG) to state-owned enterprises (SOEs) performance before and after privatisation. The data consisted of primary data obtained through questionnaires, followed by focus group, and secondary data sourced from published annual reports of SOEs. This research gathered 94 observations of firm-year of SOEs listed in Indonesia. Multiple linear regression was employed to analyse the effect of the CG index on the financial performance, and paired sample t-test to test the performance before and after privatisation. The result shows that the CG index has a positive effect on the financial performance of SOEs. Furthermore, SOEs exhibited improved financial performance after privatisation. Accordingly, the government of Indonesia should selectively choose SOEs for privatisation to achieve the optimum results of privatisation in accordance with the priorities imposed by the government as the primary owner.

Keywords: corporate governance; financial performance; privatisation; state owned enterprises. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=91858 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijrevm:v:10:y:2018:i:2:p:168-188

Access Statistics for this article

More articles in International Journal of Revenue Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().