Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129434
Authors: 
O'Toole, Conor M.
Morgenroth, Edgar
Ha Thi Thu Thuy
Year of Publication: 
2015
Series/Report no.: 
ESRI Working Paper 498
Abstract: 
Our research tests the difference in investment efficiency between state-owned enterprises (SOEs) and private firms and then evaluates the effect of privatisation and equitisation policies on the investment efficiency of former state owned enterprises (SOEs). We use a novel dataset from Viet Nam which covers large and non-listed SMEs across the construction, manufacturing, and services sectors. Our methodology uses a structural model to test the relationship between Tobin's Q and capital spending. We find no evidence of investment spending being linked to marginal returns by SOEs across all sectors and size classes. However, former SOEs which have been privatised and equitized with a minority state shareholding display positive links between Q and investment. In fact, the link is stronger for these firms than for private firms.
Subjects: 
Investment efficiency
Privatisation
State-ownership
Corporate governance
JEL: 
G31
G32
G34
L33
P31
Document Type: 
Working Paper

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