IDEAS home Printed from https://ideas.repec.org/a/ids/ijrevm/v10y2018i2p168-188.html
   My bibliography  Save this article

Corporate governance, privatisation, and financial performance of Indonesian state-owned enterprises

Author

Listed:
  • Nurharjanto
  • Tulus Haryono
  • Djoko Suhardjanto
  • Niki Lukviarman
  • Erna Setiany

Abstract

This study aimed to investigate the effect of corporate governance (CG) to state-owned enterprises (SOEs) performance before and after privatisation. The data consisted of primary data obtained through questionnaires, followed by focus group, and secondary data sourced from published annual reports of SOEs. This research gathered 94 observations of firm-year of SOEs listed in Indonesia. Multiple linear regression was employed to analyse the effect of the CG index on the financial performance, and paired sample t-test to test the performance before and after privatisation. The result shows that the CG index has a positive effect on the financial performance of SOEs. Furthermore, SOEs exhibited improved financial performance after privatisation. Accordingly, the government of Indonesia should selectively choose SOEs for privatisation to achieve the optimum results of privatisation in accordance with the priorities imposed by the government as the primary owner.

Suggested Citation

  • Nurharjanto & Tulus Haryono & Djoko Suhardjanto & Niki Lukviarman & Erna Setiany, 2018. "Corporate governance, privatisation, and financial performance of Indonesian state-owned enterprises," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 10(2), pages 168-188.
    • Handle: RePEc:ids:ijrevm:v:10:y:2018:i:2:p:168-188
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=91858
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijrevm:v:10:y:2018:i:2:p:168-188. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=99 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.