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What Effects Do Privatisation Policies Have on Corporate Governance of State-Owned Enterprises?

Author

Listed:
  • Munawarah
  • Muhammad Din
  • Fatlina Zainuddin
  • Harjum Muharam

Abstract

This study attempts to test the effect of state ownership and follow-up of audit findings in state-owned enterprises (SOEs) owned by the government of the Republic of Indonesia, on the good corporate governance of SOEs. By using Ordinary Least Square (OLS) analysis, conducted by observing 98 observations during 2010-2014, the findings show that there are negative relationship between state ownership and good corporate governance implementation in SOEs in Indonesia. In addition, the results also reveal that the follow-up of audit findings positively affect the implementation of governance.

Suggested Citation

  • Munawarah & Muhammad Din & Fatlina Zainuddin & Harjum Muharam, 2017. "What Effects Do Privatisation Policies Have on Corporate Governance of State-Owned Enterprises?," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 124-132.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:3a:p:124-132
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Good Corporate Governance; State ownership; privatization; audit findings; State-Owned Enterprises (SOEs) JEL Classification: G31; G34; G38; L33; M42;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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