Governmental Effectiveness: Analysis of State-Owned Enterprises Investments
DOI:
https://doi.org/10.51341/1984-3925_2019v22n3a8Keywords:
Government Effectiveness, Investments, State-Owned Enterprises.Abstract
Objective: analyze the relationship between the effectiveness of the government and the investments made by state-owned enterprises.
Method: this study makes use of a quasi-experiment using the Difference-in-Differences technique. The variables used to analyze the investments were: Increase in Investments, Number of Employees, Intangible Assets, Short-Term Investment and Return on Investments.
Originality/relevance: little attention was paid to comparisons between countries regarding government effectiveness, and no studies addressing the relationship between government effectiveness and state-owned enterprise investments were found.
Results: companies with the government as the majority shareholder only invest more in relation to private companies when they are in environments with low government effectiveness.
Theoretical and methodological contributions: in theoretical terms, the research addressed a new perspective that may be crucial in explaining state-owned enterprise investments: the effectiveness of government. The main methodological contribution was the use of a comparative study on government effectiveness (in terms of using multiple measures and the analysis of many countries).Downloads
References
Acemoglu, D., Robinson, J. (2010). The role of institutions in growth and development. Review of Economics and Institutions, 1(2). https://doi.org/10.5202/rei.v1i2.1
Aghion, P., Van Reenen, J. & Zingales, L. (2013). Innovation and institutional ownership. American Economic Review, 103(1), 277-304. https://doi.org/10.1257/aer.103.1.277
Alam, M. R., Kitenge, E., & Bizuayehu, B. (2017). Government effectiveness and economic growth. Economic Bulletin, 37(1), 222-227. Retrieved from: http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I1-P21.pdf.
Ankamah, S. S., & Manzoor E. Khoda S. M. (2018). Political will and government anti‐corruption efforts: What does the evidence say?. Public Administration and Development, 38(1), 3-14. https://doi.org/10.1002/pad.1815
Apaza, C. R. (2009). Measuring governance and corruption through the worldwide governance indicators: Critiques, responses, and ongoing scholarly discussion. Political Science & Politics, 42(1), 139-143. https://doi.org/10.1017/S1049096509090106
Barro, R. J. (1996). Determinants of economic growth: a cross-country empirical study. MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, April. Retrieved from: https://www.nber.org/papers/w5698.pdf.
Batniji, R., Khatib, L., Cammett, M., Sweet, J., Basu, S., Jamal, A., Wise, R. & Giacaman, R. (2014). Governance and health in the Arab world. The Lancet, 383(9914), 343-355. https://doi.org/10.1016/S0140-6736(13)62185-6
Boubakri, N., Cosset, J. C. & Saffar, W. (2008). Political connections of newly privatized firms. Journal of Corporate Finance, 14(5), 654-673. https://doi.org/10.1016/j.jcorpfin.2008.08.003
Boyne, G. A. (2003). Sources of public service improvement: A critical review and research agenda. Journal of Public Administration Research and Theory, 13(3), 367-394. https://doi.org/10.1093/jpart/mug027
Boyne, G. A., Meier, K. J., O'toole, L. J., Jr & Walker, R. M. (Eds.). (2006). Public service performance: Perspectives on measurement and management. Cambridge University Press.
Brewer, G. A., Choi, Y. & Walker, R. M. (2007). Accountability, corruption and government effectiveness in Asia: an exploration of World Bank governance indicators. International Public Management Review, 8(2), 204-225. Retrieved from: http://journals.sfu.ca/ipmr/index.php/ipmr/article/view/40/40
Brey, N. K., Camilo, S. P. O., Marcon, R. & Bandeira-de-Mello, R. (2013). Conexões políticas em estruturas de propriedade: o governo como acionista em uma análise descritiva. Revista de Administração Mackenzie (Mackenzie Management Review), 15(1), 98-124. Disponível em: http://editorarevistas.mackenzie.br/index.php/RAM/article/view/4992
Cahen, F. R. (2015). Internacionalização de empresas estatais por meio de investimento direto estrangeiro. RAE-Revista de Administração de Empresas, 55(6), 645-659. Disponível em: http://bibliotecadigital.fgv.br/ojs/index.php/rae/article/view/57580
Camargos, M. A. & Barbosa, F. V. (2010). A adoção de práticas diferenciadas de governança corporativa beneficia o acionista e aumenta a liquidez acionária?. REGE. Revista de Gestão, 17(2), 189. Disponível em: https://www.revistas.usp.br/rege/article/download/36701/39422/0
Pereira, R. A. & Campos, F. A. O. (2016). Corrupção e ineficiência no Brasil: uma análise de equilíbrio geral. Estudos Econômicos, v. 46, n. 2, p. 373-408. Disponível em: https://www.anpec.org.br/encontro/2013/files_I/i6-8233f5d8229f44dee81e3daa9d49b3d9.pdf
Carvalho, João Carlos de. (2019). Rotatividade dos professores na educação básica brasileira: caracterização, fatores associados e impactos sobre o resultado dos estudantes (2007-2016). 202 p. Tese (doutorado) - Universidade Federal do Paraná, Setor de Ciências Sociais Aplicadas, Programa de Pós-Graduação em Desenvolvimento Econômico. Disponível em: https://www.acervodigital.ufpr.br/handle/1884/62156
Ciccone, D. K., Vian, T., Maurer, L., & Bradley, E. H. (2014). Linking governance mechanisms to health outcomes: a review of the literature in low-and middle-income countries. Social science & medicine, 117, 86-95. https://doi.org/10.1016/j.socscimed.2014.07.010
Coccia, M. & Benati, I. (2017). What is the relation between public manager compensation and government effectiveness? An explorative analysis with public management implications. Quaderni I R C r E S - C N R, 2(1). Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2898262
Cooray, A. (2009). Government expenditure, governance and economic growth. Comparative Economic Studies, 51(3), 401-418. Retrieved from: https://link.springer.com/article/10.1057/ces.2009.7
Cozby, P. C. (2006). Métodos de pesquisa em ciências do comportamento (7a ed.). São Paulo: Atlas.
Creswell, J. W. (2010). Projeto de pesquisa métodos qualitativo, quantitativo e misto. São Paulo: Penso.
Fontes, J. R., Filho & Alves, C. F. (2018). Mecanismos de controle na governança corporativa das empresas estatais: uma comparação Brasil e Portugal. Cadernos EBAPE, 16(1), 1-13. Disponível em: http://www.scielo.br/pdf/cebape/v16n1/1679-3951-cebape-16-01-1.pdf
Fontes, J. R. Filho & Picolin, L. M. (2008). Governança corporativa em empresas estatais: avanços, propostas e limitações. Revista de Administração Pública, 42(6), 1163-1188. Disponível em: http://www.scielo.br/pdf/rap/v42n6/07
Friedman, B. A. (2011). The relationship between governance effectiveness and entrepreneurship. International Journal of Humanities and Social Science, 1(17), 221-225. Retrieved from: https://ijbssnet.com/journals/Vol_5_No_9_August_2014/6.pdf
Friedman, B. A. (2014). The relationship between effective governance and the informal economy. International Journal of Business and Social Science, 5(9). Retrieved from: http://www.ijbssnet.com/journals/Vol_5_No_9_August_2014/6.pdf
Gani, A. (2007). Governance and foreign direct investment links: evidence from panel data estimations. Applied Economics Letters, 14(10), 753-756. https://doi.org/10.1080/13504850600592598
Glambosky, M. C., Gleason, K. C., & Madura, J. (2010). Political Risk and Purchases of Privatized State‐Owned Enterprises. Financial Review, 45(3), 873-889. https://doi.org/10.1111/j.1540-6288.2010.00275.x
Gomes, Camila P. B. (2017). A nomeação de dirigentes de estatais a partir da Lei 13.303/16. Revista Juris UniToledo, v. 2, n. 2, p. 27-38. Disponível em: http://www.ojs.toledo.br/index.php/direito/article/view/2429
Grossi, G., Papenfuß, U. & Tremblay, M. S. (2015). Corporate governance and accountability of state-owned enterprises: relevance for science and society and interdisciplinary research perspectives. International Journal of Public Sector Management, 28(4/5), 274-285. https://doi.org/10.1108/IJPSM-09-2015-0166
Guellec, D. & Potterie, B. V. P. L. (2004). From R&D to productivity growth: Do the institutional settings and the source of funds of R&D matter?. Oxford Bulletin of Economics and Statistics, 66(3), 353-378. https://doi.org/10.1111/j.1468-0084.2004.00083.x
Guldiken, O. (2013). Too Much of a Good Thing: Board Monitoring and R&D Investment Intensity. Proceedings of the Academy of Management (Vol. 2013, No. 1, p. 15076). Briarcliff Manor, NY 10510: Academy of Management. https://doi.org/10.5465/ambpp.2013.15076abstract
Han, X., Khan, H. A., & Zhuang, J. (2014). Do governance indicators explain development performance? A cross-country analysis. A Cross-Country Analysis (November 2014). Asian Development Bank Economics Working Paper Series, (417). https://dx.doi.org/10.2139/ssrn.2558894
Hu, B., & Mendoza, R. U. (2013). Public health spending, governance and child health outcomes: revisiting the links. Journal of Human Development and Capabilities, 14(2), 285-311. https://doi.org/10.1080/19452829.2013.765392
Ibrahim, R. (2019). Corporate governance effect on financial distress: evidence from In-donesian public listed companies. Journal of Economics, Business & Accountancy Ventura (JEBAV), 21(3), 415-422. http://dx.doi.org/10.14414/jebav.v21i3.1626
Imbens, G. W., & Wooldridge, J. M. (2009). Recent developments in the econometrics of program evaluation. Journal of economic literature, 47(1), 5-86. https://doi.org/10.1257/jel.47.1.5
Jensen, M. C. & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Kraay, A. & Kaufmann, D. (2002). Growth without governance. The World Bank. https://doi.org/10.1596/1813-9450-2928
Kaufmann, D., Kraay, A. & Mastruzzi, M. (2011). The worldwide governance indicators: methodology and analytical issues. Hague Journal on the Rule of Law, 3(2), 220-246. https://doi.org/10.1017/S1876404511200046
Kor, Y. Y. & Mahoney, J. T. (2005). How dynamics, management, and governance of resource deployments influence firm‐level performance. Strategic Management Journal, 26(5), 489-496. https://doi.org/10.1002/smj.459
Kurtz, M. J. & Schrank, A. (2007). Growth and governance: Models, measures, and mechanisms. The Journal of Politics, 69(2), 538-554. Retrieved from: https://www.journals.uchicago.edu/doi/full/10.1111/j.1468-2508.2007.00549.x
Lee, S. Y. & Whitford, A. B. (2009). Government effectiveness in comparative perspective. Journal of Comparative Policy Analysis, 11(2), 249-281. https://doi.org/10.1080/13876980902888111
Lev, B. (2001). Intangibles: management, measurement, and reporting. Brookings Institution Press.
Li, J. & Qian, C. (2013). Principal‐principal conflicts under weak institutions: A study of corporate takeovers in China. Strategic Management Journal, 34(4), 498-508. https://doi.org/10.1002/smj.2027
Li, J., & Xia, J. (2017). State-owned enterprises face challenges in foreign acquisitions. Columbia FDI Perspectives. Retrieved from: http://ccsi.columbia.edu/files/2016/10/No-205-Li-and-Xia-FINAL.pdf.
Lin, Yu-Hsin, & Chang, Yun-chien. (2018). Do State-Owned Enterprises Have Worse Corporate Governance? An Empirical Study of Corporate Practices in China. Working paper. Retrieved from: https://events.barcelonagse.eu/live/files/2179-changpdf.
Lopes Júnior, E. P., Câmara, S. F., Rocha, L. G., & Brasil, A. (2018). Influence of corruption on state-owned enterprise expenditures. Revista de Administração Pública, 52(4), 695-711. http://dx.doi.org/10.1590/0034-7612173631
Marconi, M. D. A. & Lakatos, E. M. (2002). Técnicas de pesquisa. São Paulo. Atlas.
Marino, P. D. B. L. P., Soares, R. A. de, Luca, M. M. M. & Vasconcelos, A. C. de (2016). Indicadores de governança mundial e sua relação com os indicadores socioeconômicos dos países do Brics. Revista de Administração Pública, 50(5), 721-744. Disponível em: http://bibliotecadigital.fgv.br/ojs/index.php/rap/article/view/64491
Medeiros, C. R. O., & Silveira, R. A. (2017). A Petrobras nas teias da corrupção: mecanismos discursivos da mídia brasileira na cobertura da Operação Lava Jato. Revista de Contabilidade e Organizações, 11(31), 11-20. Disponível em: http://www.revistas.usp.br/rco/article/download/134817/137762/
Meyer, B. D. (1995). Natural and quasi-experiments in economics. Journal of Business & Economic Statistics, 13(2), 151-161. https://doi.org/10.1080/07350015.1995.10524589
Miranda, R. A. & Amaral, H. F. (2011). Governança corporativa e gestão socialmente responsável em empresas estatais. Revista de Administração Pública, 45(4), 1069-1094. Disponível em: http://bibliotecadigital.fgv.br/ojs/index.php/rap/article/view/7027
Montes, G. C., Bastos, J. C. A., & de Oliveira, A. J. (2019). Fiscal transparency, government effectiveness and government spending efficiency: Some international evidence based on panel data approach. Economic Modelling, 79, 211-225. https://doi.org/10.1016/j.econmod.2018.10.013
Montes, G. C., & Paschoal, P. C. (2016). Corruption: what are the effects on government effectiveness? Empirical evidence considering developed and developing countries. Applied Economics Letters, 23(2), 146-150. https://doi.org/10.1080/13504851.2015.1058900
Musacchio, A. & Lazzarini, S. (2012). Leviathan in business: Varieties of state capitalism and their implications for economic performance. Harvard Business School, Working Paper, No. 12–108. http://dx.doi.org/10.2139/ssrn.2070942
Nohria, N. & Gulati, R. (1996). Is slack good or bad for innovation?. Academy of Management Journal, 39(5), 1245-1264. https://doi.org/10.5465/256998
Olubiyi, E. A. (2013). Workers' remittances, Governance Institution And Private Investment In Nigeria. Review of Finance & Banking, 5(1). Retrieved from: http://www.rfb.ase.ro/articole/ARTICLE_V.pdf
Pagot, R. & Jardim, E. B. (2014). Os BRICS frente aos Estados Unidos após a crise financeira de 2008: alternativa a uma hegemonia declinante?. Textos de Economia, 17(2), 128-150. https://doi.org/10.5007/2175-8085.2014v17n2p128
Pérez-Cárceles, M. C., & Gómez-García, J. (2019). Goodness of governance effect on European banking efficiency. International Review of Economics & Finance. 64, 29-40. https://doi.org/10.1016/j.iref.2019.05.016
Quibria, M. G. (2006). Does governance matter? Yes, no or maybe: Some evidence from developing Asia. Kyklos, 59(1), 99-114. https://doi.org/10.1111/j.1467-6435.2006.00322.x
Ribeiro, M. C. P. & Chede, G. D. (2006). Mecanismos societários e contratuais de gestão das sociedades estatais. Revista do Serviço Público - RSP, 57(3), 363-388. Disponível em: http://repositorio.enap.gov.br/handle/1/1393
Shleifer, A. & Vishny, R. W. (1994). Politicians and firms. The Quarterly Journal of Economics, 109(4), 995-1025. https://doi.org/10.2307/2118354
Sofia, I. P. (2019). The impact of governance effectiveness and company size on environmental performance. Economics And Accounting Journal, 2(2), 76-85. http://dx.doi.org/10.32493/eaj.v2i2.y2019.p76-85
Stan, C. V., Peng, M. W. & Bruton, G. D. (2014). Slack and the performance of state-owned enterprises. Asia Pacific Journal of Management, 31(2), 473-495. https://doi.org/10.1007/s10490-013-9347-7
Steensma, K. & Yang, H. (2013). The influence of state ownership on innovation in market competition. Proceedings of the Academy of Management (Vol. 2013, No. 1, p. 15283). Briarcliff Manor, NY 10510: Academy of Management. https://doi.org/10.5465/ambpp.2013.22
Zaheer, A. & Bell, G. G. (2005). Benefiting from network position: firm capabilities, structural holes, and performance. Strategic Management Journal, 26(9), 809-825. https://doi.org/10.1002/smj.482
Zahra, S. A., Ireland, R. D., Gutierrez, I. & Hitt, M. A. (2000). Introduction to Special Topic Forum Privatization and Entrepreneurial Transformation: Emerging Issues and a Future Research Agenda. Academy of Management Review, 25(3), 509-524. https://doi.org/10.5465/amr.2000.3363324
Zif, J. (1981). Managerial strategic behavior in state-owned enterprises—Business and political orientations. Management Science, 27(11), 1326-1339. https://doi.org/10.1287/mnsc.27.11.1326
World Bank. (2014). Worldwide Governance Indicators. Retrieved from: http://databank.worldbank.org/data/views/variableselection/selectvariables.aspx?source=worldwide-governance-indicators
Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D. & Jiang, Y. (2008). Corporate governance in emerging economies: A review of the principal–principal perspective. Journal of Management Studies, 45(1), 196-220. https://doi.org/10.1111/j.1467-6486.2007.00752.x
Xavier, W. G. (2011). O efeito das mudanças institucionais em business groups no Brasil. Tese (doutorado), Universidade do Vale do Itajaí, Biguaçu, SC, Brasil. Disponível em: https://siaiap39.univali.br/repositorio/handle/repositorio/2196
Downloads
Published
How to Cite
Issue
Section
License
The authors hold the copyright to their article and grant the Journal of Accounting, Management and Governance the exclusive rights of first publication (including communication to the public and reproduction), with the work simultaneously licensed under the Creative Commons Attribution Non-Commercial 4.0 International License (CC BY-NC).
This license allows third parties to remodel, adapt, and create from the published work, as long as it is for non-commercial purposes, giving due credit for authorship and initial publication in this journal.
Authors are permitted to enter into additional separate agreements for non-exclusive distribution of the version of the work published in this journal (e.g., publish in an institutional repository, on a personal website, publish a translation, or publish a book chapter), with acknowledgment of authorship and initial publication in this journal, provided there is no commercial use/distribution.
