STATE OWNERSHIP AND COMPANY PERFORMANCE IN KAZAKHSTAN
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Date
2023
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Publisher
Nazarbayev University Graduate School of Business
Abstract
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.
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Type of access: Open
Citation
Seidazov, B. (2023). State Ownership And Company Performance In Kazakhstan. Nazarbayev University Graduate School of Business