• Title/Summary/Keyword: SOEs

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Does Bilateral Trade Between China and ASEAN Countries Improve Its Firm's Efficiency?

  • HANIFA, Mohamed Hisham;CHAN, Sok Gee;SUKOR, Mohd Edil Abd
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.2
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    • pp.313-324
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    • 2022
  • The Chinese outward foreign direct investment (OFDI) involves various bilateral trade agreements and regional agreements signed between China and other countries. This study examines the impact of Chinese OFDI in ASEAN-5 countries through ASEAN-China Free Trade Agreement (ACFTA) namely Indonesia, Malaysia, Philippines, Singapore, and Thailand from 2000 to 2016. This study attempts to address three research objectives. The first is to examine the motives for China's investment in ASEAN-5. The second is to explore the different impacts of China's investment across countries. The third is to investigate whether the OFDI conducted by state-owned enterprises (SOEs) will produce different impacts on the firm's efficiency score. Using the DEA approach, this study finds evidence that the overall Chinese OFDI is relatively efficient. We find that the estimated efficiency score of this OFDI has improved in pre- and post ACFTA where a higher overall efficiency score was reported when comparing pre- and post ACFTA signing for both SOEs and NSOEs. Finally, China's parent firms' efficiencies showed higher scores among NSOEs compared to SOEs after the signing of ACFTA for all ASEAN countries except Malaysia. We highlight that the country's institutional infrastructure, earlier investment presence, and diplomatic ties help in shaping an effective trade agreement.

Performance Analysis of CPV Modules for Optimizing Secondary Optical Elements (CPV모듈의 2차 광학계 특성에 따른 성능분석)

  • Park, Jeom-Ju;Jeong, Byeong-Ho;Park, Ju-Hoon;Lee, Kang-Yeon;Kim, Hyo-Jin
    • Journal of the Korean Solar Energy Society
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    • v.40 no.5
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    • pp.23-34
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    • 2020
  • Concentrator photovoltaic (CPV) system consists of high-quality complex optical elements, mechanical devices, and electronics components and can have the advantages of high integration and high-efficiency energy sources. III-V compound semiconductor cells have proven performance based on high reliability in the aerospace field, but have characteristics that require absolute support of the balance of systems (BOS) such as solar position trackers, receivers with heat sinks, and housing instruments. To determine the optimum parameters of secondary optical elements (SOEs) design for CPV systems, we designed three types of CPV modules, classified as non-SOEs type, reflective mirror type, and CPC lens type. We measured the I-V and P-V characteristics of the prototype CPV modules with the angle of inclination varying from 0° to 12° and with a 500-magnification Fresnel lens. The experimental results assumed misalignment of the solar position tracker or module design of pinpoint accuracy. As a result, at the 0° tilt angle, the CPC lens produced lower power due to the quartz transmittance ratio compared to that by other SOEs. However, for tilt angles greater than 3°, the CPC lens type module achieved high efficiency and stability. This study is expected to help design high-performance CPV systems.

A Study on the Relationship Between Multinationality and Performance: Evidence from China's Firms

  • WU, Renhong;HE, Yugang
    • The Journal of Industrial Distribution & Business
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    • v.10 no.7
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    • pp.7-16
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    • 2019
  • Purpose - Economic globalization provides firms with a new channel to gain benefits from foreign countries. Therefore, using the real MNEs, this paper set China's firms as an example to explore the relationship between multinationality and performance. Research design, data, and methodology - Panel data from 2008 to 2017 was used and 390 multinational firms listed in China's A-share market was selected. Additionally, related econometric methods were employed to analyze the relationship between multinationality and performance in this study. The return on assets was treated as a dependent variable, and the sales of a firm, the firm age, the debt asset ratio of a firm, the ratio of foreign sales to total sales and the enterprise properties were treated as independent variables. All of these factors were used to conduct an empirical analysis. Results - The empirical findings in this study revealed that there is a linear relationship between multinationality and performance, as well as that non state-owned enterprises (non-SOEs) have a greater effect on the relationship between multinationality and performance than that of the state-owned enterprises (SOEs). Conclusions - On the basis of evidences this paper provided, China's government should take measures in the future to help China's firms when they fulfil international economic activities.

The Role of Corporate Governance in the Corporate Social and Environmental Responsibility Disclosure

  • DIAMASTUTI, Erlina;MUAFI, Muafi;FITRI, Alfiana;FAIZATY, Nur Elisa
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.1
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    • pp.187-198
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    • 2021
  • The objective of this study is to examine the direct and indirect influences of government's role, organizational commitment, and media exposure on the corporate social and environmental responsibility disclosure (CSERD) of 42 Indonesian state-owned enterprises (SOEs) with good corporate governance as the mediator. This study uses a quantitative approach with path analysis to test the hypothesis. The sample in this study was directors of 42 state-owned enterprises in Indonesia. The data was collected using a questionnaire with items assessed on a five-point Likert scale. This study finds that 1) the government's role, organizational commitment, and media exposure have direct influences on good corporate governance and corporate social responsibility disclosure; 2) the government's role and organizational commitment have significant influences on corporate social and environmental responsibility disclosure with the mediation of good corporate governance, indicating that government's role and the organizational commitment are factors affecting Indonesian state-owned enterprises; and 3) the media exposure through good corporate governance mediation does not have a significant effect on corporate social and environmental responsibility disclosure. This means that media exposure is only one of the tools for CSERD, while SOEs have no obligation to disclose CSER through website or printed media.

Factors Affecting the Volatility of Post-IPO Stock Prices: Evidence from State-Owned Enterprises in Hanoi Stock Exchange

  • LE, Phuong Lan;THACH, Duc Khoi
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.5
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    • pp.409-419
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    • 2022
  • This paper examines the post-IPO price volatility in the first trading days after the IPO of SOEs that carry out equitization, on a sample of 76 IPOs on the Hanoi Stock Exchange (Vietnam) in the period 2013-2018. Oversubscription rate, firm size, issuance size, internal equity ownership, and listing delay are all factors that influence IPO price volatility in a primitive stock market. The results showed that the average initial market-adjusted return for the first three trading days was -11.95%; -9.58% and -7.29% and the level of price volatility is related to the rate of oversubscription and company size. Issuance price, issuance size, internal equity holdings, and listing delay do not seem to contribute significantly to post-IPO share prices. Individual investors based their valuation on information released during and after the IPO. In general, the number of IPOs that yield positive and negative returns in the first trading days is about the same, indicating that the two phenomena of undervaluation and overvaluation still occur in the process of valuing shares of Vietnamese SOEs for IPOs.

Empirical Analysis of the Changes in the Patterns of Chinese Firms' Outward Foreign Direct Investment in the Belt and Road Initiative Countries (중국 기업의 일대일로 국가에 대한 해외직접투자 패턴 변화에 관한 실증연구)

  • Wonchan Ra;Zu-Kweon Kim
    • Korea Trade Review
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    • v.47 no.6
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    • pp.307-333
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    • 2022
  • In recent years, the outward foreign direct investment (oFDI) in the Belt and Road Initiative (BRI) by Chinese companies has significantly increased in size and changed in content. However, changes in the oFDI patterns between the pre- and post-BRI periods have not received sufficient attention from academia despite their theoretical and strategic significance. This paper reviewed existing research to establish seven hypotheses on changes in the oFDI patterns of Chinese companies investing in BRI countries and conducted empirical analyses to test the hypotheses using secondary data. The results showed that after the BRI agreement, Chinese oFDI in BRI countries was more active in less economically and less institutionally developed countries, that the oFDI by privately-owned enterprises (POEs) increased more than that of state-owned enterprises (SOEs), and that SOEs were more active in the social overhead capital (SOC) area while POEs were more active in the non-SOC area. The paper concludes with a summary, implications, and future research directions.

A Study on the Influencing Factors of Globalization of Chinese Public Enterprises (중국 공기업의 세계화 영향 요인에 관한 연구)

  • Xie Li;Tae-Hyoung Mun
    • Journal of Industrial Convergence
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    • v.20 no.12
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    • pp.145-153
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    • 2022
  • This study is an empirical analysis of the major factors influencing the globalization level of Chinese public enterprises. Based on previous research, we conducted a regression analysis using the transnational index as a dependent variable and export tax refund, exchange rate, human resources, innovation ability, asset management ability, loan ability, corporate development stage, global deployment ability, etc. as independent variables. As a result of the empirical analysis of this study, it was found that export refund (E_tax) and exchange rate (E_rate) have a statistically significant effect on the external influencing factors of globalization. Human resource capabilities (Edu, O_hunan), innovation capability (R&D), and financing capability (Finance) were found to be important internal influencing factors for the globalization of public enterprises. The role of the government in establishing the strategy of SOEs should be maintained at the level of guidance and it should provide guidance so that the autonomy of SOEs is not restricted as the role of the government is separated from the government's compulsory management and supervisory functions, leading to excessively compulsory management.

CEO's Political Independence, Board Chair Separation, Executive's Expertise, and Performance in State-Owned Enterprises (공기업 CEO의 정치적 독립성, 이사회 의장 분리, 임원의 전문성과 성과)

  • Yu, Seungwon
    • KDI Journal of Economic Policy
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    • v.35 no.2
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    • pp.1-39
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    • 2013
  • Considering the relationship between state-owned enterprise (SOE) CEOs and political circles, this study examines the performance impacts of CEO's succession type, board chair separation, and industry expertise and finance expertise of CEOs and outside directors. I propose the definition of political independence in SOE CEOs based on the independence in appearance that might affect general people's perception. It means that there are no relationships or circumstances that might affect SOE CEO's judgment, activity, and report. The definition is able to overcome the limitations of the prior research that could not discover the CEOs who were affiliated to political circles because the research just distinguished the CEOs following their pre-jobs. This study focused on the performance impacts of political independence impaired CEO as well as the CEO's impacts on the relationship between the performance and other corporate governance variables. I selected as dependent variables the average return on asset as operating income divided by total assets and the average customer satisfaction rate evaluated by Korean government during the first three years following the year of the events of explanatory variables. My theory and evidence from the various CEO's personal background and financial information from SOEs in Lee Myung-bak Administration and Rho Moo-hyun Administration suggest the following important things. First, the analysis based on whether or not a SOE CEO keeps political independence shows that a political independence impaired CEO made a significantly negative impact on customer satisfaction rate. Second, the separation between a board chair and a CEO in SOEs introduced by Korean Act on Management of Public Institutions made a significantly positive impact on customer satisfaction rate. However, the positive impact of the board chair separation was removed in a political independence impaired CEO's SOE. Third, outside director's industry expertise made a significantly positive impact on return on asset. However, the positive impact of the outside director's industry expertise was removed in a political independence impaired CEO's SOE. Fourth, the comparison between Lee Myung-bak Administration and Roh Moo-hyun Administration on the corporate governance and performance of SOEs shows that the ratio of political independence impaired CEO was significantly higher in Lee Administration and the ratio of outside director's industry expertise and finance expertise were respectively significantly higher in Roh Administration. Based on these results, I suggested a few policy alternatives for CEO's improved political independence and requirements for executive's expertise in SOEs.

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Interdependence and Check in East Sea Rim: Focused on Border Trade n Transitional Nations (환동해권 지역사회의 상호의존과 견제: 제이행국가 접경지역의 대외경제교류 중심으로)

  • Choi, Youngjin
    • International Area Studies Review
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    • v.16 no.3
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    • pp.293-321
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    • 2012
  • This study aims to examine how institutions has been formed to deepen interdependence and to keep check in trade on the border regions of East Sea Rim between the macro structure and micro behaviors. The transitional nations such as China, Russia, and North Korea adjacent to the East Sea Rim exhibits unique characteristics in terms of transaction governance structure. While the regional economy in northeast China is still overwhelmed by the stated-owned enterprises(SOEs), it strongly encourages the private economic trade to form institutional economy through the border trade port and peddler trade market. Thus trade is shaped by the mixed governance. In far east Russia, whereas the SOEs are in charge of exporting oil, gas etc., private firms and small scale traders are importing household items, so that it can also be called as the mixed governance, while informal social networks simultaneously work. In North Korea, for the trade, since the firms are mainly required to have the permits from the different levels of government, it is regarded as the hierarchical governance. The institutional economics seems to well explain the changing agencies and their influence on the trade among the regions in the East Sea Rim.

State-Owned enterprises as ICSID claimants and establishment of jurisdiction: The Decision on Jurisdiction in BUCG v. Yemen (공기업의 ICSID 중재 신청과 관할권 성립: BUCG v. Yemen 사건을 중심으로)

  • Chang, Sok Young
    • Journal of Arbitration Studies
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    • v.28 no.1
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    • pp.27-42
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    • 2018
  • Due to the increasing number of foreign investments made by state-owned enterprises, there has been a growth in the number of investment arbitration claims submitted by them. However, international investment treaties including the ICSID Convention are intended to apply to investor-state disputes and according to Article 25 of the ICSID Convention, the claimant has to be "a national of another Contracting State." This raises the question of whether state-owned companies can be considered as "nationals of another Contracting State" or private investors. This issue has been discussed in the ICSID Decision on Jurisdiction in BUCG v. Yemen which has been released in 2017. Since there would be more claims related to the standing of state-owned enterprises as claimants, it is required to understand whether state-owned enterprises could be permitted access to the ICSID under the ICSID Convention Article 25. Moreover, the ICSID cases addressing the jurisdictional issues including BUCG v. Yemen has to be closely analyzed. In particular, as the Broches test was applied in order to decide the standing of state-owned companies, it is necessary to examine how the Broches criteria has been interpreted and adopted in the ICSID cases.