Investment Efficiency, State-Owned Enterprises and Privatisation: Evidence from Vietnam in Transition
Conor O'Toole (),
Edgar Morgenroth () and
Thi Thu Thuy Ha
No WP498, Papers from Economic and Social Research Institute (ESRI)
Our research tests the difference in investment efficiency between state-owned enterprises (SOEs) and private firms and then evaluates the effect of privatisation and equitisation policies on the investment efficiency of former state owned enterprises (SOEs). We use a novel dataset from Viet Nam which covers large and non-listed SMEs across the construction, manufacturing, and services sectors. Our methodology uses a structural model to test the relationship between Tobin's Q and capital spending. We find no evidence of investment spending being linked to marginal returns by SOEs across all sectors and size classes. However, former SOEs which have been privatised and equitized with a minority state shareholding display positive links between Q and investment. In fact, the link is stronger for these firms than for private firms.
Keywords: investment/manufacturing/Policy/Services (search for similar items in EconPapers)
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Journal Article: Investment efficiency, state-owned enterprises and privatisation: Evidence from Viet Nam in Transition (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:wp498
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