New Zealand State-Owned Enterprises: Is State-Ownership Detrimental to Firm Performance?

New Zealand Economic Papers, 52(2), 170-184. https://doi.org/10.1080/00779954.2016.1272626

The University of Auckland Business School Research Paper Series

Posted: 15 Feb 2022

See all articles by Kenny Ka Yin Chan

Kenny Ka Yin Chan

The University of Auckland

Lily Chen

University of Auckland Business School

Norman Wong

University of Auckland Business School

Date Written: 2018

Abstract

This study examines the performance of State-owned enterprises by conducting a contemporary examination in the New Zealand environment. Applying both a cross-sectional and time-series approach, we document significant and consistent evidence that state ownership is negatively associated with firm profitability compared to private ownership. We also find evidence suggesting that state ownership is positively associated with asset turnover and labour intensity, but not associated with labour turnover. This implies that SOEs on average experience a higher asset turnover due to excessive labour employment, compared to private firms. Full paper available at https://doi.org/10.1080/00779954.2016.1272626

Keywords: State-owned enterprises, privatisation, performance, profitability, operating efficiency

Suggested Citation

Chan, Kenny Ka Yin and Chen, Lily and Wong, Norman, New Zealand State-Owned Enterprises: Is State-Ownership Detrimental to Firm Performance? (2018). New Zealand Economic Papers, 52(2), 170-184. https://doi.org/10.1080/00779954.2016.1272626, The University of Auckland Business School Research Paper Series, Available at SSRN: https://ssrn.com/abstract=4033893

Kenny Ka Yin Chan

The University of Auckland

Sir Owen G Glenn Building, 12 Grafton Road, Auckla
Auckland, 1010

Lily Chen (Contact Author)

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Norman Wong

University of Auckland Business School ( email )

Private Bag 92019
Auckland, 1142
New Zealand
(64 9) 3737599 Ext. 87098 (Phone)
(64 9) 373 7406 (Fax)

HOME PAGE: http://www.business.auckland.ac.nz

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