Browsing by Author "Seidazov, Balislam"

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    STATE OWNERSHIP AND COMPANY PERFORMANCE IN KAZAKHSTAN
    (Nazarbayev University Graduate School of Business, 2023) Seidazov, Balislam
    State ownership and its effects on firm performance have been researched widely across many countries and time periods, however, the results of these research endeavours have been mixed. While in some cases the relationship between state ownership and firm efficiency has been negative, in others it could be positive or even non-linear, having a U-shape. State ownership can be negatively correlated with firm performance, possibly because their objectives can differ from solely operating on high profit, some of them can be less profitable, yet, still efficient in their main mission. For instance, several studies mention that state ownership can have a negative effect on firm performance as these firms do not prioritize maximization of profits (dodonov, china1, ru1, oecd2017), instead they carry policy burdens and provide communal services (china1). On the other hand, state owned enterprises can take advantage of their closer ties to the government and its resources, which would make state ownership positively related to firm performance. According to several studies government ownership’s effect on firm effectiveness can be positive, because of their ability to access state owned capital (oecd, ru1) which would give them comparative advantage over privately held firms. Finally, there is an opinion which partially agrees with both sides and combines the two. A study titled “State ownership and firm performance: Empirical evidence from Chinese listed companies” by Mei Yu of the Birmingham City University, state ownership and firm performance have a U-shaped relationship (China2 84). RU1 also offers a similar opinion of the possibility of U-shaped and inverted U-shaped relationships between state ownership and firm performance.