The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure

30 Pages Posted: 20 Sep 2008

See all articles by Eskil Le Bruyn Goldeng

Eskil Le Bruyn Goldeng

University College of Southeast Norway

Leo A. Grünfeld

Norwegian Institute of International Affairs

Gabriel R. G. Benito

affiliation not provided to SSRN

Abstract

This article examines differences in performance between private companies (POEs) and state owned enterprises (SOEs), with an emphasis on the effects of market structure. The study uses a comprehensive panel covering in principle all registered companies during the 1990s in Norway, a country where SOEs play an important role in regular markets. Return on assets as well as costs relative to sales revenue are used as measures of performance in markets where SOEs and POEs compete with each other. Overall, POEs perform significantly better than SOEs. The study tests the hypothesis that SOE managers may learn from POE managers in environments with stronger competition, but finds only weak empirical support for such a learning mechanism.

Suggested Citation

Goldeng, Eskil Le Bruyn and Grünfeld, Leo and Benito, Gabriel R. G., The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure. Journal of Management Studies, Vol. 45, Issue 7, pp. 1244-1273, November 2008, Available at SSRN: https://ssrn.com/abstract=1270879 or http://dx.doi.org/10.1111/j.1467-6486.2008.00790.x

Eskil Le Bruyn Goldeng (Contact Author)

University College of Southeast Norway ( email )

Norway

Leo Grünfeld

Norwegian Institute of International Affairs ( email )

Gabriel R. G. Benito

affiliation not provided to SSRN

No Address Available

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