Advanced
search

To read this content please select one of the options below:

The effect of privatisation on performance of state‐owned‐enterprises in Indonesia

Emita W. Astami (Faculty of Economy, Universitas Teknologi Yogyakarta, Yogyakarta, Indonesia)
Greg Tower (School of Accounting, Curtin University of Technology, Perth, Australia)
,
Rusmin Rusmin (School of Accounting, Curtin University of Technology, Perth, Australia)
John Neilson (School of Accounting, Curtin University of Technology, Perth, Australia)

Asian Review of Accounting

ISSN: 1321-7348

Article publication date: 18 May 2010

3182

Abstract

Purpose

–

The purpose of this paper is to investigate whether partially privatised state‐owned‐enterprises (SOEs) perform significantly better than fully SOEs in the developing country of Indonesia.

Design/methodology/approach

–

This study uses a data set of 157 SOEs in Indonesia for the year 2006 to examine the issue of ownership structure and its performance.

Findings

–

Statistical analysis supports the hypothesis that SOEs with private sector ownership have higher levels of performance than those fully owned by the government. There are also significant differences in financial leverage, firm size, assets‐in‐place, financial statement reliability, and industry variances between fully privatised and partially privatised SOEs.

Originality/value

–

These findings support the Indonesian Government move towards further privatisation in that SOEs with at least some private sector ownership have greater performance levels.

Keywords

Citation

Astami, E.W., Tower, G., Rusmin, R. and Neilson, J. (2010), "The effect of privatisation on performance of state‐owned‐enterprises in Indonesia", Asian Review of Accounting, Vol. 18 No. 1, pp. 5-19. https://doi.org/10.1108/13217341011045971

Publisher

:

Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

Related articles

Manage cookies

We’re listening — tell us what you think

Join us on our journey