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- Title
Effects of corporatization on the financial performance of non-financial state-owned enterprises in Latin America between 1999 and 2018.
- Authors
Liliana Arias-Bello, Martha; Gómez-Villegas, Mauricio; Espinosa Acuña, Oscar Andrés
- Abstract
This article provides empirical evidence on the effects of the corporatization and partial privatization of state enterprises (SOEs) in Latin America on their financial performance. Using dynamic panel data regression models, we identify variables that explain the profitability and investment of state-owned companies in three scenarios: companies with partial privatization by issuing shares in the stock market; non-privatized companies listed on the stock exchange through debt instruments; and unlisted companies. The study found that the partial privatization of EPE through the issuance of shares in the stock market has positive effects on profitability and investment. However, in the case of the bond issue, there was no conclusive evidence on the impact of its financial performance. Finally, for unlisted SOEs, the determinants of profitability and investment are asset size and cost management. The results of this research are relevant given the Latin American public sector reforms implemented in recent decades.
- Publication
Revista Brasileira de Políticas Públicas, 2022, Vol 12, Issue 3, p666
- ISSN
2179-8338
- Publication type
Article
- DOI
10.5102/rbpp.v12i3.8522