Exercise of ownership rights and efficiency in state-owned enterprises: the case of Uruguay
Abstract
Purpose
This paper aims to analyze the relevance of the exercise of ownership rights on the management of state-owned enterprises (SOEs).
Design/methodology/approach
The author exploited a “natural experiment” observed in Uruguay. The author developed an empirical method that to compare the results of SOEs between two five-year presidential terms with de facto differences with regard to the exercise of ownership rights.
Findings
The author found evidence suggesting that the poor exercise of ownership rights has a negative impact on the results of SOEs.
Research limitations/implications
The results of this study are based exclusively on the Uruguayan case and are limited to the comparison between two five-year terms.
Practical implications
A holding of SOEs that holds and exerts ownership rights emerges as a natural alternative to improve efficiency.
Originality/value
The exercise of ownership rights in SOEs has a significant impact on its performance indicators.
Keywords
Acknowledgements
The authors would like to thank the excellent research assistance work conducted by Guzmán González and Victoria Dotta. This work benefited from the support of Pharos, Uruguay.
Citation
Munyo, I. and Regent, P. (2016), "Exercise of ownership rights and efficiency in state-owned enterprises: the case of Uruguay", Management Research, Vol. 14 No. 2, pp. 150-165. https://doi.org/10.1108/MRJIAM-12-2015-0623
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited