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Article
Publication date: 29 October 2020

TianLong Ma and Huiping Zhang

This study aims to disclose how the nature of corporate ownership, stock efficiency and wage level affect the optimal proportion of employee stock.

Abstract

Purpose

This study aims to disclose how the nature of corporate ownership, stock efficiency and wage level affect the optimal proportion of employee stock.

Design/methodology/approach

This paper studies three duopoly markets: two private enterprises, two state-owned enterprises (SOEs) and a private enterprise and an SOE. The competitions between the two parties are taken as a two-stage dynamic sequential game and studied through back-induction.

Findings

The results reveal that the enterprise ownership has a directly bearing on the optimal proportion of employee stock and determines whether to implement the employee stock ownership plan (ESOP) and the specific level of the plan. The optimal proportion of employee stock is positively correlated with its contribution to enterprise efficiency. There are many influencing factors on the effect of wage level on the optimal proportion of employee stock, namely, the ownership nature of ESOP implementer and efficiency difference of different nature stocks.

Social implications

The results of this study provide policy recommendations for companies preparing to implement ESOP.

Originality/value

The research findings provide policy implications for enterprises to prepare a suitable ESOP and the reform of national equities, especially the mixed-ownership reform in China.

Details

Journal of Organizational Change Management, vol. 33 no. 6
Type: Research Article
ISSN: 0953-4814

Keywords

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Book part
Publication date: 19 July 2014

Stuart Locke and Geeta Duppati

This paper empirically examines the impact of corporate governance reforms on the financial performance of Indian state-owned enterprises (SOEs) for the period 2003–2011.

Abstract

Research question

This paper empirically examines the impact of corporate governance reforms on the financial performance of Indian state-owned enterprises (SOEs) for the period 2003–2011.

Research findings/insights

The findings indicate that the various corporate governance reforms collectively exhibited a statistically significant positive impact on performance when a difference in difference estimation process is used. However, the performance of SOEs is less than that of publicly listed companies, which is consistent with prior research. When the SOEs are compared with a matched pairing of publicly listed companies of similar size and same industry, their performance was comparable and in many instances superior. This is indicative of the regulatory constraints on competitors and preferential access to resources and markets given to the SOEs. As SOEs move towards a more mixed ownership model with more of them listed on the stock exchange and greater public ownership of shares the corporate governance issues will increase in importance.

Theoretical/academic implications

The controlled sell down of shares in SOEs presents a need for continuing governance reforms and ongoing research to track progress.

Practitioner/policy implications

The most striking observation from the study is that changes that were introduced as a corporate governance reform, such greater professionalism in boards, did not gain traction and enhance performance, rather the process of director selection and the concentrated bureaucratic and political interference stymied what was asserted to be conceptually sound reforms.

Details

Mechanisms, Roles and Consequences of Governance: Emerging Issues
Type: Book
ISBN: 978-1-78350-706-1

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Book part
Publication date: 12 July 2021

Giulia Romano, Claudio Marciano and Maria Silvia Fiorelli

Chapter 3 discusses existing management models and corporate governance best practices for waste management firms. It provides some relevant experiences across Europe. It…

Abstract

Chapter 3 discusses existing management models and corporate governance best practices for waste management firms. It provides some relevant experiences across Europe. It offers a focus on the ongoing remunicipalization process in the public service provision and urban waste management.

Details

Best Practices in Urban Solid Waste Management
Type: Book
ISBN: 978-1-80043-889-7

Keywords

Content available
Book part
Publication date: 12 July 2021

Giulia Romano, Claudio Marciano and Maria Silvia Fiorelli

Abstract

Details

Best Practices in Urban Solid Waste Management
Type: Book
ISBN: 978-1-80043-889-7

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Expert briefing
Publication date: 2 April 2019

Reforms of China's state-owned enterprises.

Details

DOI: 10.1108/OXAN-DB242908

ISSN: 2633-304X

Keywords

Geographic
Topical
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Article
Publication date: 13 July 2018

Hafsa Ahmed and David A. Cohen

The purpose of this paper is to focus on understanding of stakeholder attributes and attitudes towards privatisation. It examines the stakeholder attributes through the…

Abstract

Purpose

The purpose of this paper is to focus on understanding of stakeholder attributes and attitudes towards privatisation. It examines the stakeholder attributes through the framework provided by Mitchell et al. (1997). By combining it with the concept of issue salience proposed by Bundy et al. (2013), it addresses the current gap in research on how stakeholders influence the process of privatisation.

Design/methodology/approach

This research uses a process research approach to examine the privatisation process in New Zealand’s electricity industry in order to explore contexts, content and process of change. By collecting real-time data during the period of privatisation, utilising a process approach provided the authors a view of the historical path and associated events which lead to identification of stakeholder attributes and attitudes towards privatisation.

Findings

The research offers a unique insight into stakeholder attributes exhibited by different groups during privatisation. The authors identified that during privatisation the government is the ultimate stakeholder who sets the rules of the game of privatisation by exhibiting the attributes of power, legitimacy and urgency. The attributes exhibited by other stakeholders were transitory and were impacted by issue salience. The authors also identified that stakeholders exhibiting all three attributes (the government) chose a non-response approach to deal with any conflicting issues raised by other stakeholders.

Originality/value

The research examined the new public management emphasis on the privatisation of state-owned enterprises (SOEs) vis-à-vis stakeholder groups, utilising the complementary concepts of stakeholder salience and issue salience. This research makes a contribution to stakeholder management theory in the public sector by identifying how various stakeholders influence the process of privatisation of SOEs.

Details

International Journal of Public Sector Management, vol. 32 no. 2
Type: Research Article
ISSN: 0951-3558

Keywords

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Article
Publication date: 11 September 2017

Huong Dieu Dang and Michael Jolly

The strong performance of New Zealand’s equity market and the Government’s efforts to encourage small investors to invest in initial public offering (IPO) firms raises two…

Abstract

Purpose

The strong performance of New Zealand’s equity market and the Government’s efforts to encourage small investors to invest in initial public offering (IPO) firms raises two questions: should retail investors invest in IPO offers and what types of IPOs are worth buying in the long term? The paper aims to discuss these issues.

Design/methodology/approach

The authors construct buy and hold equally weighted portfolios of IPOs and peers based on sales forecast, market capitalisation, and price-to-book ratio. The authors employ four benchmark-adjusted performance measures: cumulative average abnormal return (CAR), holding period return difference, wealth relative, and excess return (α).

Findings

IPOs underperform their peers over the medium and long term, with a five-year CAR ranging between −6.4 and −19.7 per cent. IPOs listed post-GFC show inferior benchmark-adjusted performance with a statistically significant average monthly CAPM α of −1.07 per cent (vs −0.13 per cent for pre-2009 IPOs). Over a five-year horizon, mature IPOs, IPOs with high market cap, high sales forecast, high leverage, low price-to-book ratio, and positive earnings forecast outperform other IPOs. Small IPOs or those with a small degree of leverage exhibit the worst five-year CAR ranging between −30.2 and −49.1 per cent. Of all IPOs examined, large firms, well-established firms, and value firms achieved positive five-year CARs of between 6.6 and 17.5 per cent.

Practical implications

The results are useful for retail investors and financial advisors in making sensible investment decisions.

Originality/value

This study is the first to utilise book-to-market and sales forecast to construct peer samples and to identify the red flags for IPO downfalls in New Zealand. It covers the longest sample period (1991-2015) in New Zealand’s context.

Details

Managerial Finance, vol. 43 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

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Article
Publication date: 13 July 2015

Hafsa Ahmed, Michaela Balzarova and David A Cohen

The review of contemporary organisational change theories identified one theory which seemed relevant to explaining the organisational change phenomenon in public…

Abstract

Purpose

The review of contemporary organisational change theories identified one theory which seemed relevant to explaining the organisational change phenomenon in public enterprises – Van de Ven and Poole’s (1995) Evolutionary Change Theory (ECT). However, further review of the management literature revealed its limitations in explaining change, particularly in public enterprises. The theory fails to identify the triggers of change and the roles of various stakeholders, and the purpose of this paper is to enhance model of the ECT and appraise it.

Design/methodology/approach

Researchers continue to highlight the need to examine context when examining a change process; therefore, the authors utilised a process research approach to examine changes in the New Zealand electricity industry over the past four decades. As the approach is a flexible one, it allowed exploration of the critical features of change.

Findings

Analysis revealed compelling evidence of two new proposed stages to the ECT which operated in conjunction with external environmental influences that acted as stimuli for change.

Research limitations/implications

The research provided insight into the various influences on organisational change, particularly public enterprises. It confirms the previously ignored power of the external environment and the role of stakeholders in influencing organisational change.

Originality/value

The research advances current understanding of organisational change as it offers an enhanced model of the ECT by identifying the trigger for organisational change in public enterprises. Furthermore, it finds different stakeholder groups with the ability to influence the organisational change process.

Details

Journal of Organizational Change Management, vol. 28 no. 4
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 11 April 2019

Huong Dieu Dang

This paper aims to examine the performance and benchmark asset allocation policy of 70 KiwiSaver funds catergorised as growth, balanced or conservative over the period…

Abstract

Purpose

This paper aims to examine the performance and benchmark asset allocation policy of 70 KiwiSaver funds catergorised as growth, balanced or conservative over the period October 2007-June 2016. The study focuses on the sources for returns variability across time and returns variation among funds.

Design/methodology/approach

Each fund is benchmarked against a portfolio of eight indices representing eight invested asset classes. Three measures were used to examine the after-fee benchmark-adjusted performance of each fund: excess return, cumulative abnormal return and holding period returns difference. Tracking error and active share were used to capture manager’s benchmark deviation.

Findings

On average, funds underperform their respective benchmarks, with the mean quarterly excess return (after management fees) of −0.15 per cent (growth), −0.63 per cent (balanced) and −0.83 per cent (conservative). Benchmark returns variability, on average, explains 43-78 per cent of fund’s across-time returns variability, and this is primarily driven by fund’s exposures to global capital markets. Differences in benchmark policies, on average, account for 18.8-39.3 per cent of among-fund returns variation, while differences in fees and security selection may explain the rest. About 61 per cent of balanced and 47 per cent of Growth funds’ managers make selection bets against their benchmarks. There is no consistent evidence that more actively managed funds deliver higher after-fee risk-adjusted performance. Superior performance is often due to randomness.

Originality/value

This study makes use of a unique data set gathered directly from KiwiSaver managers and captures the long-term strategic asset allocation target which underlines the investment management process in reality. The study represents the first attempt to examine the impact of benchmark asset allocation policy on KiwiSaver fund’s returns variability across time and returns variation among funds.

Details

Pacific Accounting Review, vol. 31 no. 2
Type: Research Article
ISSN: 0114-0582

Keywords

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Article
Publication date: 7 August 2017

Tingting Zhou and Juan LI

The purpose of this paper is to explore financial quality problems, based on the dynamics of the ownership structure, in the privatization process to clarify the internal…

Abstract

Purpose

The purpose of this paper is to explore financial quality problems, based on the dynamics of the ownership structure, in the privatization process to clarify the internal relation among the ownership’s attribution of the commercial mixed ownership company, the company’s performance and its financial relationships. This paper also examines the mixed ownership enterprise’s potential problems during the development process.

Design/methodology/approach

Adopting the single case study method, the authors selected the mixed ownership public company Hubei Sanxia New Building Materials Co., Ltd. (stock code: 600293) to explore, from a privatization perspective, the impact of mixed ownership on financial quality.

Findings

The study found that Sanxia experienced tight cash flow and heavy debt burdens due to the privatization and that its controlling shareholders used non-operating income to support Sanxia, thus characterizing the dual role of “the grabbing hand” and “the helping hand.” Sanxia’s privatization process highlighted the volatility of performance, the exception of monetary funds and the existence of accounting fraud rather than the prosperous development of the capital combination.

Originality/value

These findings provided case support that privatization negatively affects the financial quality of the company. Previous studies have indicated that there should be greater focus more on the issue that state-owned shares rebound during the process of privatization and that, with respect to commercial mixed ownership reform of state-owned enterprises, such reform must avoid the passive transfer of corporate control, ensure the fairness of the related transactions, prevent the loss of state-owned assets and preclude the controlling shareholders from seizing interests of listed companies.

Details

Nankai Business Review International, vol. 8 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

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