ARE STATE-OWNED FIRMS LESS PROFITABLE THAN NON-STATE-OWNED FIRMS? EUROPEAN EVIDENCE

Cristina Gaio, Inês Pinto and Luís Rodrigues
Additional contact information
Cristina Gaio: ISEG - Lisbon School of Economics and Management, Universidade de Lisboa, Portugal
Inês Pinto: ISEG - Lisbon School of Economics and Management, Universidade de Lisboa, Portugal
Luís Rodrigues: ISEG - Lisbon School of Economics and Management, Universidade de Lisboa, Portugal

Portuguese Journal of Management Studies, 2016, vol. 21, issue 1, 3-24

Abstract: Prior research suggests that state-owned enterprises (SOE) have lower performance levels than non-state-owned enterprises (NSOE). The main goal of this study is to analyse the impact of State ownership on profitability, using two major measures of performance: Return on Equity and Return on Assets, and a broader sample of about 11,000 firms, from 37 countries, between 2003 and 2011. Our main results suggest that SOE are less profitable than NSOE for both performance measures. This finding remains equal in the crisis periods and for Western and Eastern Europe countries. We also find a negative relationship between State control and SOE´s profitability levels. Additional results indicate that, in general, SOE from Western Europe are more profitable than SOE from Eastern Europe.

Keywords: Profitability; State Owned Enterprises; Non-State Owned Enterprises; Crisis. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ejms.iseg.ulisboa.pt/files/3_EJMS_Vol21_Is ... tate-owned_firms.pdf (application/pdf)

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:pjm:journl:v:xxi:y:2016:i:1:p:3-18

Access Statistics for this article

Portuguese Journal of Management Studies is currently edited by Luís Mota de Castro, Tiago Cardão-Pito, Mark Crathorne

More articles in Portuguese Journal of Management Studies from ISEG, Universidade de Lisboa Contact information at EDIRC.
Bibliographic data for series maintained by Luís Mota de Castro, Tiago Cardão-Pito, Mark Crathorne ().