ARTÍCULO
TITULO

Determinants of Financial Performance of State-Owned Enterprises with Government Subsidy as Moderator

Aminullah Assagaf    
Hapzi Ali    

Resumen

The purpose of this research is intended to study the factors that affect the financial performance of state-owned enterprises. In this study used purposive sampling method seven state-owned enterprises with observations during the last eleven years. In the data analysis, this study uses linear regression model and its management using SPSS software-Amos 23. The results of this study found that the government subsidy variable and significant negative effect on the financial performance of the alpha 0.01, which means that the state-owned enterprises is difficult to manage the company as a independently if the subsidy program and the additional capital the government continues to do every year. Regression calculation results also found that strategic profitability and significant positive effect on alpha 0.10 to financial performance, which means that the company's management is still likely to perform earnings management practices to affect the company's financial performance. Capital structure variables showed a positive effect and no significant effect on financial performance for the investment decisions state-owned enterprises financed with debt tend not financially feasible so it does not affect financial performance. Payed on the investment decision is a low economical feasibility of using the size of externalities or social benefit is greater than the social cost. Government subsidy used as independent variables and as a moderator variable, the study found that government subsidy strengthen relationships variable capital structure with financial performance, because the government subsidy strengthen the link between debt with financial performance, because the government encouraged state-owned enterprises to seek a loan to reduce the burden of government subsidies or additional capital.Keywords: financial performance; strategic profitability; financial indicators; capital structureJEL Classifications: G1, G3

 Artículos similares

       
 
Yarong Chen,Luca Sensini,Maria Vazquez     Pág. 40 - 46
The purpose of this paper is to investigate the relationship between leverage and its main determinants in the Argentine context, using the trade-off theory and the pecking order theory. Studies that have addressed this issue in emerging economies are st... ver más

 
Mihaela Enachi,Daniel Botez    
Accounting is influenced by a variety of historical, economic, cultural, and other non-accounting factors that led to different judgments in creating a system for representing the reality, the application of regulated requirements and the validation of t... ver más

 
Shubhra Biswas,Arindam Gupta     Pág. 104 - 113
The study assesses the status of financial literacy in West Bengal and finds its impact on household decision-making of 600 respondents from eight selected districts of the state. Financial literacy of female and rural respondents is found to be lower. H... ver más

 
Prem Lal Joshi,Ashutosh Deshmukh,Jamel Azibi     Pág. 25 - 35
This paper examines the association between audit fees and attributes of internal audit (IA), audit committee (AC), as measured by independence and financial expertise, as well as characteristics of the firm. The determinants of audit fees have been exte... ver más

 
Ogujiuba Kanayo     Pág. 123 - 133
The Agricultural sector in South Africa is amongst the main contributors to job-creation South Africa. Since the post-apartheid era, South Africa has seen a severe transformation in this sector, of which previously disadvantaged farmers (especially women... ver más