Author
Listed:
- Irshad, Saadia
- Khakwani, Maria Shams
- Khalid, Umar
- Kouser, Rehana
Abstract
Purpose: In accordance with the Washington Consensus, most developing countries were forced to privatize state-owned enterprises (SOEs). Corporatization and partial privatization emerged as two alternative possibilities for any government in circumstances where full privatization was not practicable. Pakistan followed suit and began the partial privatization and corporatization of SOEs working in its economy. This research examines whether Pakistan's corporatization or partial privatization policies have improved the profitability of these state-owned enterprises.Design/Methodology/Approach: If so, what variables contributed to this improvement in profitability, as measured by Return on Assets and Earnings per Share. The paper used data from 1990 to 2015 of thirteen SOEs, largely from the energy sector, that have been corporatized by partial privatization through stock market or other mechanisms.Findings: Results exhibit that the primary criteria strongly related with increased performance of corporatized SOEs, according to our findings, are the appointment of non-government directors by companies and persistently positive Gross Domestic Product of the economy. On the other hand, debt commitments, ownership, and size of an SOE are all weak or insignificant variables in determining whether an SOE should be corporatized.Implications/Originality/Value: Due to their strategic significance, the energy industry should continue to be governed and regulated by the government, but with a greater percentage of non-nominated members on their boards of directors to maintain corporate governance. &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
Suggested Citation
Irshad, Saadia & Khakwani, Maria Shams & Khalid, Umar & Kouser, Rehana, 2021.
"Gauging the Sustainability of Corporatized State-Owned Enterprises (SOEs) in Pakistan,"
Sustainable Business and Society in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 3(4), pages 567-580, December.
Handle:
RePEc:src:sbseec:v:3:y:2021:i:4:p:567-580
DOI: http://doi.org/10.26710/sbsee.v3i4.2070
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:src:sbseec:v:3:y:2021:i:4:p:567-580. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr Rana Muhammad Adeel Farooq (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.