Complex state ownership, competition, and firm performance – Russian evidence

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dc.contributor Hanken School of Economics, Finance, Helsinki en
dc.contributor Hanken School of Economics, Finance, Helsinki en Liljeblom, Eva Maury, Benjamin Hörhammer, Alexander 2019-08-14T09:07:01Z 2019-08-14T09:07:01Z 2019-07-30
dc.identifier.citation Liljeblom , E , Maury , B & Hörhammer , A 2019 , ' Complex state ownership, competition, and firm performance – Russian evidence ' , International Journal of Emerging Markets . en
dc.identifier.issn 1746-8809
dc.identifier.other PURE: 10734393
dc.identifier.other PURE UUID: 51e965a3-1771-4970-b0fd-c1c033d8fff0
dc.identifier.other Scopus: 85071308524
dc.identifier.other ORCID: /0000-0003-4924-6426/work/62600710
dc.description.abstract Purpose – State ownership has been common especially in industries with restricted competition. In Russia, state controlled firms represent around 41% of the market value of all listed firms (Deloitte, 2015). Yet, there is a significant gap in the literature regarding the effects of various forms of government control in listed firms. The purpose of this study is to fill this gap by exploring the impact of the complexity of state ownership and competition on the performance of Russian listed firms. Design/methodology/approach – The sample consists of data for 72 firms (360 firm-years) in the Russian MOEX broad market index during 2011-2015. The complexity of state ownership is captured by studying forms of state control including majority/minority, direct/indirect, federal/regional, mixed structures, and golden shares. Findings – We find significant differences in performance relating to different forms of state ownership. State control is negatively related to firm valuation and the sales/employees ratio. Performance is weakest when state ownership takes the form minority, regional, or direct ownership. State control through golden shares typically outperforms other state controlled firms. We find indications of employment prioritization beyond the economical optimum. In addition, the relation between state ownership and profitability becomes positive in sectors where state firms appear to enjoy lower competition. Originality/value – While the effects of state ownership have been studied on many markets, there is a lack of studies on the effects of different forms, or the complexity, of state ownership beyond direct and indirect ownership. We contribute to the literature on the performance effects of state ownership by studying a multitude of forms of governmental ownership as well as the role of competition in Russia. Especially the profitability of state controlled firms is significantly affected by industry characteristics. Implications of the results are discussed both from firm and policy maker perspectives. en
dc.language.iso eng
dc.relation.ispartof International Journal of Emerging Markets
dc.rights en
dc.subject 512 Business and Management en
dc.subject Firm performance en
dc.subject State ownership en
dc.subject Competition en
dc.subject Russian owners en
dc.subject KOTA2019? en
dc.subject PREM2019_08 en
dc.subject 2 - Hybrid open access publication channel en
dc.subject 1 - Self archived en
dc.subject en
dc.subject 1- Minst en av författarna har en utländsk affiliation en
dc.subject 1- Publicerad utomlands en
dc.subject 0- Ingen affiliation med ett företag en
dc.title Complex state ownership, competition, and firm performance – Russian evidence en
dc.type Article
dc.description.version Peer reviewed
dc.type.uri info:eu-repo/semantics/other
dc.type.uri info:eu-repo/semantics/publishedVersion

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