• Title/Summary/Keyword: Public Enterprises

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Business Environment of Public Sector Enterprises: Using the International Rankings for Evaluation

  • Shalimova, Nataliia;Kuzmenko, Halyna;Shalimov, Volodymyr;Reshetov, Valerii;Androshchuk, Iryna
    • International Journal of Computer Science & Network Security
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    • v.22 no.6
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    • pp.297-309
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    • 2022
  • Taking into account the globalization of the economy and the intensification of European integration processes, it has been proved that an important part of evaluating the effectiveness of activity of public sector enterprises should be a comparative analysis of the overall operation environment, namely public procurement, economic environment and tax policy, with the relevant systems of other countries of the world. The indicators and components of international ratings "Doing Business", "Paying Taxes", "Benchmarking Public Procurement" have been studied. Different groups of indicators forming "Doing Business" and "Paying Taxes" in the context of the impact on public sector enterprises have been identified: those which fully comply with the need to evaluate the operating environment of public sector enterprises and those which should be used with restrictions, regarding the peculiarities of creating and functioning of public sector enterprises. A comparative analysis of the place of Ukraine, Lithuania and Slovenia among other countries of the world in accordance with the international rankings of "Doing Business", "Paying Taxes", "Benchmarking Public Procurement" have been made. It has been substantiated that the results of such comparative analysis will allow identifying risk areas, and relevant information can be used in developing of recommendations for improving the effectiveness of activity of public sector enterprises.

Corporate Governance and Managerial Performance in Public Enterprises: Focusing on CEOs and Internal Auditors (공기업의 지배구조와 경영성과: CEO와 내부감사인을 중심으로)

  • Yu, Seung-Won
    • KDI Journal of Economic Policy
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    • v.31 no.1
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    • pp.71-103
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    • 2009
  • Considering the expenditure size of public institutions centering on public enterprises, about 28% of Korea's GDP in 2007, public institutions have significant influence on the Korean economy. However, still in the new government, there are voices of criticism about the need of constant reform on public enterprises due to their irresponsible management impeding national competitiveness. Especially, political controversy over appointment of executives such as CEOs of public enterprises has caused the distrust of the people. As one of various reform measures for public enterprises, this study analyzes the effect of internal governance structure of public enterprises on their managerial performance, since, regardless of privatization of public enterprises, improving the governance structure of public enterprises is a matter of great importance. There are only a few prior researches focusing on the governance structure and managerial performance of public enterprises compared to those of private enterprises. Most of prior researches studied the relationship between parachuting employment of CEO and managerial performance, and concluded that parachuting produces negative effect on managerial performance. However, different from the results of such researches, recent studies suggest that there is no relationship between employment type of CEOs and managerial performance in public enterprises. This study is distinguished from prior researches in view of following. First, prior researches focused on the relationship between employment type of public enterprises' CEOs and managerial performance. However, in addition to this, this study analyzes the relationship of internal auditors and managerial performance. Second, unlike prior researches studying the relationship between employment type of public corporations' CEOs and managerial performance with an emphasis on parachuting employment, this study researches impact of employment type as well as expertise of CEOs and internal auditors on managerial performance. Third, prior researchers mainly used non-financial indicators from various samples. However, this study eliminated subjectivity of researchers by analyzing public enterprises designated by the government and their financial statements, which were externally audited and inspected. In this study, regression analysis is applied in analyzing the relationship of independence and expertise of public enterprises' CEOs and internal auditors and managerial performance in the same year. Financial information from 2003 to 2007 of 24 public enterprises, which are designated by the government, and their personnel information from the board of directors are used as samples. Independence of CEOs is identified by dividing CEOs into persons from the same public enterprise and persons from other organization, and independence of internal auditors is determined by classifying them into two groups, people from academic field, economic world, and civic groups, and people from political community, government ministries, and military. Also, expertise of CEOs and internal auditors is divided into business expertise and financial expertise. As control variables, this study applied foundation year, asset size, government subsidies as a proportion to corporate earnings, and dummy variables by year. Analysis showed that there is significantly positive relationship between independence and financial expertise of internal auditors and managerial performance. In addition, although business expertise and financial expertise of CEOs were not statistically significant, they have positive relationship with managerial performance. However, unlike a general idea, independence of CEOs is not statistically significant, but it is negatively related to managerial performance. Contrary to general concerns, it seems that the impact of independence of public enterprises' CEOs on managerial performance has slightly decreased. Instead, it explains that expertise of public enterprises' CEOs and internal auditors plays more important role in managerial performance rather than their independence. Meanwhile, there are limitations in this study as follows. First, in contrast to private enterprises, public enterprises simultaneously pursue publicness and entrepreneurship. However, this study focuses on entrepreneurship, excluding considerations on publicness of public enterprises. Second, public enterprises in this study are limited to those in the central government. Accordingly, it should be carefully considered when the result of this study is applied to public enterprises in local governments. Finally, this study excludes factors related to transparency and democracy issues which are raised in appointment process of executives of public enterprises, as it may cause the issue of subjectivity of researchers.

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(A) Case Study on the Financial Solvency of Local Public Enterprises - Focused on Evaluation of Debt management of The GwangJu Metropolitan City Corporation - (지방공기업 재무건전성 사례분석 - 광주광역시도시공사 개발사업 채무관리 평가를 중심으로 -)

  • Jeon, Gwang-Sup
    • Journal of Cadastre & Land InformatiX
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    • v.45 no.1
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    • pp.75-97
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    • 2015
  • Recently public institutions' debt is growing therefore it became an important issue to the level that the government concerns about the possibility of financial burden to reduce the debt. Especially debt of public enterprises in metropolitan areas was in a serious state where debt in late 2013 was 43.2 trillion, which takes approx. 58.4% of 73.9 trillion of debt of all local public enterprises. Sound financial state of local public enterprises is important to public enterprises in metropolitan areas and it may affect seriously financial stability of local governments when public enterprises have financial problems. However, land supply business to form local industrial complexes or local demand for development of public rental housing business always exist; and vitalizing local economy and creating jobs through these businesses are very necessary to develop the areas. However, for local economic development, industirial land business and public rental housing business are needed. In this study, Gwangju Metropolitan City Corporation Ltd is used as a case study to evaluate the local public financial soundness via debt management assessment i.e.(using) the feasibility analysis in the urban development and housing development. As an improvement measure following the result of analysis, for the enhancement of financial soundness of urban innovation corporation, the government and local government shall evaluate and differentiate market demand, price competitiveness, and infrastructure of new town land development project to improve accuracy of project feasibility analysis. Another important insight is that there should be local government-centered management of liabilities of the local government and local public enterprises with the integrated liability management system to reduce the liability of the corporation and solve the issue of debts for local government. This study is significant in that it has analyzed cases from the theoretical aspect to secure financial soundness of national and local public enterprises.

Directions of Public Enterprise Reform in Korea (한국공기업의 개혁 방향)

  • Kim, Kwang-Soo;Lee, Yu
    • Korean Business Review
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    • v.22 no.1
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    • pp.1-25
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    • 2009
  • Typically, economic rationality is too apart from in a public enterprises system is started many cause troubles. The government in that upper management personnel of agencies and politicians who exploit the parachute and coalesce with the labor union as a hotbed of corruption due to inefficiency have bands. Most of peoples need to reform public enterprises and the idea became. The future direction of public enterprise reform is clear. As like Infrastructure industrial sector which is difficult to privatization of government owned and controlled public enterprises to improve efficiency and management systems to build. On the other hand, it is difficult to upset non-public enterprises, private sector efficiency in the transfer of management control to consider the idea of an active policy of privatization conversion is required.

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The Pursuit of Public Benefit in Fashion Enterprises (패션기업의 공익 추구 현상)

  • Ko, Hyun-Zin
    • Journal of the Korean Society of Clothing and Textiles
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    • v.34 no.10
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    • pp.1717-1730
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    • 2010
  • This research analyzes the recent phenomenon of pursuing public benefit in fashion enterprises according to the increasing importance of corporate social responsibility attitudes towards the global sustainability crisis. The pursuit of public benefit in fashion enterprises has been realized by the activities that contribute to public welfare through one or plural corporations aligned with government, social corporations, and NGOs. The goals of public beneficial activities are to promote public issues and to support the underprivileged and communities both financially and voluntarily. Such activities can be categorized as philanthropy, sponsorship, social marketing, cause-related marketing, and public benefit product development. Especially public beneficial activities in fashion enterprises are featured as the charity donations of apparel products, the collaboration with fashion celebrities and artists in relation with popular culture and art, the limited edition of excellent design with slogans, and the visual campaigns to promote public issues. They deal with human right issues for the underprivileged and disease prevention issues. In addition, specially environmental issue and community trade issues (often raised in the fashion manufacturing and consuming process) are increasing.

A Study to the evaluation Service Quality of Public Corporations (공기업의 서비스 품질 평가에 관한 연구)

  • Jung, Kyung-Hee;Cho, Jai-Rip
    • Journal of the Korea Safety Management & Science
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    • v.11 no.1
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    • pp.143-153
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    • 2009
  • One of the important components of this administrative reform is customer satisfaction. Every public enterprises introduced the Service Charter and Korean government took Customer satisfaction as the key index of public sector performance assessment. Most public enterprises introduced customer satisfaction management in an attempt to improve the quality of customer service. The government granted high incentives to excellent business innovative enterprises and developed additional indices, which are related to CS. From now on, every Korean enterprises must embody feasible customer satisfaction management and improve the quality of customer service In this research, we proposed a quality evaluation standard model which is suitable for the public enterprise based on the Service Quality Criteria, and examined the model. A 7-Point Likert Scale was used based on the five categories within the Service Quality: responsiveness, convenience, tangibility, sympathy and reliability, we analysed the validity and causal relationship among the factors within the model.

A Study on Records Management of Local Public Enterprises in Busan Metropolitan City (지방공기업의 기록물 관리에 관한 연구 - 부산광역시를 중심으로 -)

  • Choi, Min-Young
    • Journal of Korean Society of Archives and Records Management
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    • v.7 no.1
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    • pp.171-192
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    • 2007
  • The purpose of this study is to examine the present conditions and to raise several points on the records management of the local public enterprise. On the basis of these finding we shall offer remedies to raise the efficiency of records management. Five local public enterprises under the umbrella of Busan Metropolitan City were selected. They supplied a general picture of the actual management status of public records. To improve the task of records management in local public enterprises, certain topics need to be addressed. Local Government should emphasize the importance and necessity of records management to all the staff of the local public enterprises. And the local autonomous entities and National Archives & Records Service should impose a duty on the records management of public enterprises and supervise it regularly.

A Study on Records Management of Public Enterprises Supervised by National Archives of Korea (국가기록원 직접관리기관 공기업의 기록관리에 관한 연구)

  • Kim, Jihyun
    • Journal of the Korean BIBLIA Society for library and Information Science
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    • v.24 no.3
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    • pp.73-97
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    • 2013
  • This study examined Records Management(RM) practice of public enterprises supervised by National Archives of Korea(NAK). These enterprises are included among public institutions mandated to perform RM according to Public Records Management Act of 2006. The study performed telephone interviews of 8 records managers employed in public enterprises and investigated current status of RM practices, perception of the practices and records managers within the enterprises and treatment to them, as well as opinions of the NAK's assessment of RM in public institutions, While non-electronic records were managed in an appropriate manner, electronic records needed to be transferred, disposed of, and preserved properly. The majority of interviewees expressed positive opinions on the contribution of RM to effectiveness and transparency of the enterprises. However, RM was perceived as irksome work conducted by those in a low position. More interviewees were permanent contract workers or contract personnel than regular employees. They felt a sense of deprivation due to the discrepancy of annual incomes among public enterprises and the differences in treatment and attitude toward between contract workers and regular workers. Interviewees suggested that NAK's assessment of RM was useful since it provided a basis for RM in their institutions. Yet, they pointed out that its measurements were lack of consistency and relevance to public enterprises because those focused on RM in governmental organizations. They also noted that RM practices that the assessment do not cover might be ignored.

A Case Study on Ethical Management of Public Enterprises: Focusing on the Case of Korea Gas Technology Corporation (공기업 윤리경영 사례 연구: 한국가스기술공사 사례를 중심으로)

  • Kim, Dongchul;Kim, Jung-Won
    • Journal of Korean Society for Quality Management
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    • v.49 no.4
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    • pp.623-640
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    • 2021
  • Purpose: As an excellent example of ethical management of public enterprises, it provides implications for excellent management strategies through continuous ethical management promotion to domestic public enterprises and general enterprises through case analysis of the Korea Gas Technology Corporation's ethical management system and implementation. Methods: A case analysis was conducted on the ethical management system and implementation of the Korea Gas Technology Corporation, focusing on ethical management, human rights management, and social contribution activities. Results: The Korea Gas Technology Corporation's ethical management case is significant as an example showing the long-term progress and development process of establishing and implementing the ethical management system. Starting with the establishment of a basic plan for ethical management in 2004, the Korea Gas Technology Corporation has continuously advanced its ethical management system and practical capabilities. Through this, it is possible to provide implications to other companies through benchmarking on major implementations at each stage, such as the introduction, institutionalization, settlement, and maturity of the ethical management system. Conclusion: It proposes ethical management execution performance management centered on the performance of each stakeholder, linkage between the ethical management strategy system and the organization's strategy system, classification of related subjects and roles in the ethical management promotion system, and active external communication.

Study on Acceptability Analysis of Local Public Enterprise Management Assessment -Focus on Chungcheongnam-do Direct Management Enterprises- (지방공기업 경영평가의 수용성 분석 -충청남도 직영기업을 대상으로-)

  • Ko, Seung-Hee
    • The Journal of the Korea Contents Association
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    • v.14 no.12
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    • pp.744-752
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    • 2014
  • This research analyzed acceptability of local public enterprise management assessment targeting Chungcheongnam-do direct management enterprises. To do this, this research analyzed influence with acceptability of local public enterprise management assessment by composing the area with 5 aspects related to local public enterprise management assessment. More differentiated strategy is required to operate management assessment efficiently, since direct management enterprises have different shape from other public enterprises in respect of organizational structure. In case of water and sewage, it tends to be difficult to return the result of management assessment to the local government organization, so that managers' interest and effort is necessarily required. Also, responsible person's professionalism is required to raise achievement of direct management enterprise through management assessment, politic management plan for this is necessary. Above all, the structure of incentive for management assessment result is difficult in making intended effect as other public enterprises. Therefore, differentiation of compensation system for assessment result is required.