New Zealand State-owned enterprises: is state-ownership detrimental to firm performance?

Kenny Ka Yin Chan, Li Chen*, Norman Wong

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

This study examines the performance of State-owned enterprises by conducting a contemporary examination in the New Zealand environment. Applying both a cross-sectional and time-series approach, we document significant and consistent evidence that state ownership is negatively associated with firm profitability compared to private ownership. We also find evidence suggesting that state ownership is positively associated with asset turnover and labour intensity, but not associated with labour turnover. This implies that SOEs on average experience a higher asset turnover due to excessive labour employment, compared to private firms.

Original languageEnglish
Pages (from-to)170-184
Number of pages15
JournalNew Zealand Economic Papers
Volume52
Issue number2
DOIs
Publication statusPublished - 4 May 2018
Externally publishedYes

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