Do Market Performance of SOEs Outperform Private Firms? (A Case of Indonesia Exchange)

Nur Khamisah, Anisa Listya, Ruth Samantha Hamzah

Abstract


The  purpose  of  the  privatization  strategy  is  to  improve  the  performance  of  Stated  Owned Enterprises  (SOEs)  that are considered to have a  poor  performance that is not  better than the private companies. The data is collected from the company's annual  report  and  from  the  Osiris Database.  This research  uses  purposive  sampling method and doing multiple linear regression test analysis to test the research hypothesis. The  final  sample  of  this  study  consisted  of  454  years  of  company  observation.  This study finds  that privatized SOEs have better levels of market performance  than  private  companies.  Regression test  results  show  the  coefficient  of market performance of SOEs is positive and significant at the level  1%.  These results  indirectly  indicate  that  the  privatization  strategy  through  IPO conducted by the government against several SOEs has been effective in improving the performance of SOEs.

Keywords


Stated Owned Enterprises (SOEs); Privatization; Market Performance

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DOI: https://doi.org/10.29259/sijdeb.v4i4.289-298

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Sriwijaya International Journal of Dynamic Economics and Business
Jl. Srijaya Negara Gedung Fakultas Ekonomi Lt.3
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