During transition, maintaining employment and providing a social safety net to the unemployed are important to social stability, which in turn is crucial for the productivity of the whole economy. Because independent institutions for social safety are lacking and firms with strong profit incentives have little incentives to promote social stability due to its public good nature, state-owned ent...

There are two schools of thoughts on the important issue of reforming state-owned enterprises (SOEs). We call them the ownership school and the management school. The ownership school argues that the key to the reform is to diversify SOEs’ ownership, including privatization, in order to eliminate government control of SOEs. The management school emphasizes the need to improve government’s manag...

The increasing speed of globalisation has created both opportunities and challenges to many transitional economies. This paper analyses the impact of foreign direct investment (FDI) on the productivity of the State-Owned Enterprises (SOEs) and concludes that SOE reform is inevitable. The SOEs’ obligations to provide social welfare should be removed to enable them to compete on an equal footing ...

This paper assess the employment consequences of FDI on state-owned enterprises (SOEs) in Urban China, with the aid of instrumental variables quantile regression technique based on a rich panel data set from recent years. It documents evidence that foreign participation at the level of the firm enhances the growth prospects of the more dynamic SOEs only. Furthermore, sector level FDI and export...

This paper examines the effect of state control and ownership structure on the leverage decision of firms listed in the Chinese stock market. Our results show that state-owned enterprises (SOEs) have higher leverage ratios than non-SOEs, and SOEs in regions with a poorer institutional environment have higher leverage ratios than SOEs in better regions. We also show that the largest shareholding...

We show that 70% of Chinese listed companies are ultimately controlled by government agencies, thereby indicating that state ownership remains widespread in China’s stock markets. Three questions are considered that are related to government control structures and their impact on firm value: (1) how do government agencies maintain their control of listed companies; (2) what are the impacts of d...

All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission, provided that full acknowledgement is given. Township and Village Enterprises (TVEs) have played a significant role in the growth of the Chinese economy since the economic reforms of 1978. This paper analyses the productive efficiency of a cross section of TVEs in the manufactur...

Monopoly is regulated in the regulation of State-Owned Enterprises (SOEs) as right to regulate (bestuur) all state resources mandated by constitution Article 33 1945 Constitution and also BUMN Law Number 19 2003 where one them a company that an entity government-owned business form limited liability company. The capital divided into wholly or at least 51 percent shares owned Republic Indonesia ...