Search results

This paper aims to re‐examine both the short‐ and long‐term performance of UK privatisations, with specific reference to the comparative performance of utility privatisations with non‐utility privatisations and private sector initial public offerings (IPOs).

The paper uses conventional event study methodology to examine the short‐ and long‐run comparative performance of IPOs. The long‐run analysis also adopts a buy‐and‐hold methodological approach.

The results reveal that short‐term under‐pricing is significantly higher in privatisations than in private sector firms, and specifically with the utility firms, and thus supports the hypothesis that governments tend to underprice privatisation issues more due to concerns over reassuring investors regarding potential future intervention. The long‐term results show that privatisations not only consistently out‐perform the benchmark index, but they also tend to out‐perform private sector firms. However, as with the short‐term analysis the results for the non‐utility firms are far less conclusive.

The paper illustrates that IPO performance of privatisations not only can differ from private sector issues, but the type of firm and the aims and objectives of the issuing government are a major factor in both the short‐ and long‐run performance of the firm.

The results highlight the practical issues involved in the relative pricing of privatisations dependent on the type of firm involved.

The explicit separation of privatisation issues by industry type and the comparison with a private sector sample split by both industry sector and by market size.

The objective of the present study is to evaluate and analyse the performance of Indian electricity distribution utilities post the implementation of landmark Electricity Act 2003.

Stochastic frontier analysis (SFA) that incorporates exogenous influences on operational efficiency is adopted in the present study. Specifically, a stochastic frontier production function model with a technical inefficiency effects model (Battese and Coelli, 1995) is chosen as a preferred model. In this model, the function that explains the inefficiency scores is estimated in a single stage with the production technology. This avoids the problem of inconsistency which is possible in the two-stage approach.

The sample involved 52 Indian electricity distribution utilities for seven-year period from 2006 to 2013. Major findings of SFA show that Indian electricity distribution utilities post the implementation of Electricity Act (2003) had, on average, experienced efficiency improvement during the observed period. The overall mean technical effciency score is estimated as 78.5% which indicates that there exist wide scope for effciency improvement in the sector. Further, the empirical findings also indicate that publicly owned distribution utilities obtain average technical efficiencies of 71.3%, which is lower than privately owned distribution utilities, which achieve average technical efficiencies of 85.7%.

Power supply quality indicators such as SAIFI, SAIDI, CAIFI, etc. and unobserved heterogeneity also influence the efficiency analysis of electricity distribution utilities. Hence, these parameters as explanatory variables can be incorporated in the future work.

The results obtained from this empirical study would likely be helpful for utility managers and policymakers to know how well they are performing, and how a better corporate strategy a particular utility can formulate to improve its operational efficiency and also its position in the marketplace.

This paper is amongst the first significant attempts that implement SFA approach to the panel dataset over a longer period of time – 2006 to 2013, so, as to evaluate and analyse the operational efficiency of Indian electricity distribution utilities in a single framework after the enactment of Electricity Act (2003). Unlike previous studies, this study investigates the degree to which various exogenous (or environmental) factors influence efficiency levels in these utilities.

The paper is based on a five year, UMIST‐Institute of Management study into the changing nature of the quality of working life and seeks to uncover differences in the incidence and impact of organizational change on the perceptions and experiences of managers in the public sector, the private sector and the (former public) utilities. The research indicates that there are significant differences in the impact of organizational change on managers in the three sectors with public sector managers and managers from the utilities having been more adversely affected. An analysis of managers’ perceptions of their “organization as a place to work”, prevailing managerial styles in their organization and managers’ perceptions of the “changing nature of their job” also reveals wide differences between managers in the three different sectors.

The electric utility industry, unlike most other technology‐intensive industries, does not spend much money or effort on research and development. Many utilities do not possess an in‐house R&D facility, nor is there an R&D line item in their budgets. Over the last several decades the rate of change in the electric utility industry has been very slow and in‐house R&D efforts have not been required. As the rate of change in the industry is beginning to change, the need to pursue R&D is increasing. The electric utility industry is responding to this increasing requirement by increasing R&D budgets, and in some cases re‐initiating the R&D process within individual utilities. The purpose of this paper is to focus on R&D portfolio management efforts of various actors from different industrial sectors, to find out the best practices by using benchmarking method.

The paper used case study approach and on‐site interviews as research methods.

The authors found that R&D management is in its infancy in the electric utility sector, while the methods established in the manufacturing sector are applicable there.

This study is exploring R&D management in the electric utility sector and contributes to the service innovation research stream.

The purpose of this paper is to investigate the status quo of Global Reporting Initiative (GRI)-based sustainable public value (SPV) reporting by electric utilities. Furthermore, the study attempts to find out whether a stock exchange listing and/or a public ownership are positively associated with electric utilities’ reporting regarding their contributions to a sustainable development (SD) or not.

An empirical analysis of sustainability reports published by electric utilities from 28 different countries all over the world is carried out. The investigation is based on a documentary analysis of 83 GRI G4 reports.

The findings show that electric utilities’ coverage of GRI indicators of the electric utilities sector disclosures varies between, as well as within, the different categories of the GRI guidelines and that the coverage of sector-specific indicators is often lacking behind the general coverage rates. Furthermore, the study reveals that a stock exchange listing is positively associated with electric utilities’ GRI-based SPV reporting. In contrast, public ownership does not show a significant association.

Electric utilities have a significant influence on SD. They operate in a regulated environment that is targeted at utilizing electric utilities for economic and environmental public policy objectives. Against that background, the study discusses which issues of SPV creation are reported by electric utilities that use the GRI guidelines and therefore brings together the public value (PV) and the sustainability community.

The purpose of this paper was to examine the predictive power of each dimension of public service motivation (PSM) on job performance (JP) in a Taiwan sample.

The present study adopted a cross-sectional approach using a large-scale questionnaire survey in Taiwan (N=2,239). Participants from six utility sectors in two infrastructure-relevant ministries (Ministry of Transportation and Communications (MOTC) and Ministry of Economic Affairs (MOEA)), with heterogeneous sectors, were recruited, including representatives of the Taiwan Railways Administration (TRA), Chunghwa Post (CHP), Taiwan Power Company (TPC), CPC Corporation, Taiwan (CPC), Taiwan Sugar Corporation (TSC), and Taiwan Water Supply Corporation (TWSC). The sample consisted of 2,239 public employees from six public utilities.

Although the results suggest that the PSM observed in western society also exists in the Taiwanese public utilities context, the self-sacrifice (SS) and the compassion (COM) dimensions were unconfirmed. The research found that for all utilities SS was significantly negatively correlated with JP, while attraction to public policy making (APP) and commitment to public interests (CPI) were significantly positively correlated with performance. Moreover, CPI was the only dimension of PSM that consistently predicted employees’ JP across utilities.

First, the authors tested the theory using a limited sample of public employees from Taiwanese public utilities. The cross-sectional design does not offer a clear cause-and-effect relationship as examined in the current study. Data collected only from public utilities in Taiwanese sample may cause concerns for the generalisability of the present findings to other settings. Second, the data do not address the timevariant effects of PSM. Third, the current empirical findings are based on Taiwan’s public utilities. The observations should be interpreted with caution. A broader sample of employees would make the empirical results more generalisable beyond the country-specific findings.

Researchers should unpack the PSM and JP concepts and strategically explore subdimensional relationships, but these results offer new insights into the influence of such subdimensions on the link between PSM and JP. PSM in public utilities has great potential to enhance JP through high levels of CPI and APP. Furthermore, public utilities management staff should acknowledge the value of PSM for JP and, if applicable, praise it with substantial rewards.

The relationship of the PSM to JP in public utilities is much less studied, especially in Asian countries. Moreover, no study on employees in public utilities has previously used a Taiwan sample.

The purpose of this paper is to investigate the motivation and post-merger operating performance (OP) of European utility sectors following mergers and acquisitions (M&A).

Motives behind M&A are examined by looking into the relationships between total gains, target gains and acquirer gains. Post-merger OP is measured by comparing the sample of European utilities with a matched portfolio based on size and market to book ratio with respect to five accounting indicators: growth in turnover, growth in earnings before interest and tax, return on assets, net profit margin and growth in fixed assets.

Synergy is the primary motive for M&A in the European utility firms. This study also found that post-merger OP is negative and significant across all the five accounting indicators matched by size, and market to book ratio suggesting that utility mergers underperform in the long term. The findings suggest that gains accruing to utilities involved in acquisitions are short term in nature.

Negative post-merger OP bears important policy implications as in future antitrust/competition authorities should be more vigilant before approving utility mergers.

Public utilities possess several characteristics that are different from industrial firms and therefore need to be examined separately. Empirical literature on M&A is very limited on utilities. This study has addressed this gap by examining the motivation and post-merger OP of the European utility firms.

In 2009, Newsweek published a report in which they ranked the 500 largest US companies and the 100 largest global companies based on its environmental performance measures (http://greenrankings2009.newsweek.com/). This ranking is referred to as Newsweek’s Green Ranking. Included in this ranking is information about water and air pollution, solid waste disposal, toxic wastes, carbon emissions, and enforcement actions. The question we are addressing in this study is how well it measures pollution performance? The question is relevant to environmental accounting/reporting since it is part of a dilemma yet to be answered: Aggregated environmental indices/scores are easy for average information users to percept, while specific information may not be preserved when it is aggregated into the overall score(s).

Specifically, we examine whether Newsweek’s Green Ranking is correlated with pollution measures based on Toxics Release Inventory (TRI) in order to determine how valid or reliable Newsweek’s Green Ranking is – in other words, how much Newsweek’s Green Ranking can explain the pollution by the toxic releases. We find that there is no significant correlation between Newsweek’s Green Ranking and the TRI measures except for the firms in the utilities industry. Concluding that on one measure, which we consider a very important one, there is no justification for the overall Green Ranking Score presented by Newsweek. However, in Newsweek’s three-part score the element that is termed the Environmental Impact Score captures pollution performance measured based on TRI. The contrast between the overall ranking and performance ranking indicates that a composite index that incorporates hard performance and soft measures can dilute the information carried by performance data.

The purpose of this paper is to develop a suitable benchmarking framework that encompasses multiple criteria of sustainable water supply services for assessing the performance of select North Indian urban water utilities and also to arrive at potential for input reductions (or efficient input levels).

The study considers 35 North Indian urban water utilities pertaining to two union territories (Chandigarh and Delhi) and three states (Haryana, Punjab and Uttar Pradesh) for sustainability‐based performance assessment using input‐oriented variable returns to scale data envelopment analysis (DEA) model. Important criteria considered for sustainable water supply services are service sufficiency, service reliability, resource conservation, staff rationalization, and business viability which in turn address the key sustainability dimensions (social, environmental and financial).

The approach when applied to a sample of 35 North Indian urban water utilities shows low‐performance levels for most of the utilities, with significant scope for reduction in operation and maintenance expenditure, staff size and water losses. State/UT‐wise analysis of sustainability‐based average efficiency presents the highest score for Chandigarh and the least score for Haryana, whereas the rest of the three states/UT score in between them.

Limited data availability has constrained the incorporation of other sustainability criteria (such as services to the poor, tariff design, customer services, revenue functions, etc.) for efficiency analysis of urban water utilities. Also, estimation of efficiency scores does not encompass the effect of exogenous environmental factors which are beyond utilities' managerial control (such as topography, population density, water source, ownership status, etc.).

This framework would be useful for the regulator or operator of the facility to rank the utilities and devise performance‐linked incentive mechanism or price cap regulation.

This paper is a significant departure from the other international benchmarking initiatives/studies as it develops a holistic framework for benchmarking in the water sector that encompasses multiple criteria of sustainable water supply services using DEA as a tool.

The purpose of this paper is to examine the relative importance of global sector effects in African sector portfolios (ASPs). It explores the dynamics of the rate of change and the level of global sector effects in their respective ASPs.

The variance of African industry returns is decomposed to the component attributable to the corresponding global industry and the proportion that is African industry specific. The authors then scale the global component by the African sector-specific component to obtain the relative global sector influences in their corresponding ASP returns.

The evidence suggests that global sector effects are dominated by African industry-specific influences on the African markets; however, in the recent period the global sector influence has risen in importance. Additionally, the 2008 Global Financial Crisis had significant impact in the relative global sector effects in the ASPs. Turning points in the rate of change of and the relative importance of the corresponding global sector effects in the ASPs are identified. The findings infer time-varying global sector effects in their respective ASPs. The evidence suggests sector-level differences in the diversification gain of the ASPs.

The ASPs offer global investors the opportunity for diversification gains when included in geographically diversified portfolio within the same sector, although, global sector effects on the African markets have increased recently.