TY - JOUR
T1 - Political influence on the investment of state-owned enterprises
AU - Lopes Júnior, Elias Pereira
AU - Bandeira de Mello, Rodrigo
AU - Bucheli, Marcelo
N1 - Publisher Copyright:
© 2024 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2024
Y1 - 2024
N2 - How does government influence over state-owned enterprises affect the latter investment decisions? We argue that governments use their influence over the SOEs to build or strengthen a political coalition that supports the governments’ agenda. We use a sample of 96,379 observations from publicly listed firms and SOEs from 41 countries and argue that the greater the potential conflict between principal-principal, the greater the investments by SOEs. Government influence over SOEs can lead to inefficient decisions, favoring investments in politically disputed regions over economically attractive ones. Our findings have theoretical implications for the literature on minority shareholders’ rights and government policy.
AB - How does government influence over state-owned enterprises affect the latter investment decisions? We argue that governments use their influence over the SOEs to build or strengthen a political coalition that supports the governments’ agenda. We use a sample of 96,379 observations from publicly listed firms and SOEs from 41 countries and argue that the greater the potential conflict between principal-principal, the greater the investments by SOEs. Government influence over SOEs can lead to inefficient decisions, favoring investments in politically disputed regions over economically attractive ones. Our findings have theoretical implications for the literature on minority shareholders’ rights and government policy.
KW - Corporate governance
KW - Corporate Governance (O160)
KW - Financial Crisis (O160)
KW - Fixed Effects Model (C330)
KW - investments
KW - state-owned enterprises
UR - http://www.scopus.com/inward/record.url?scp=85193048800&partnerID=8YFLogxK
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U2 - 10.1080/17487870.2024.2353311
DO - 10.1080/17487870.2024.2353311
M3 - Article
AN - SCOPUS:85193048800
SN - 1748-7870
JO - Journal of Economic Policy Reform
JF - Journal of Economic Policy Reform
ER -