The Ownership Structure and Economic Performance of Central and Eastern Europe’s Largest Enterprises
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Publication date: 2017-06-30
GNPJE 2017;289(3):89-114
The aim of this article is to analyze the scope of state ownership and to compare the financial results of the 500 largest non-financial enterprises in 12 Central and Eastern European countries. The data is for enterprises listed as “Coface - CEE Top 500” in 2014. The question posed in this article is: “Does the form of ownership relate to the financial results of enterprises?” In the case of 70 of these 500 enterprises, the state is either a majority or minority owner, but it invariably exercises supervisory control. Most of these state-owned enterprises are Polish (24) and Slovak (9). They dominate in network sectors. In order to identify the interdependencies between the form of ownership and the financial results of an enterprise, the authors calculated the Pearson product-moment correlation coefficient, t-test statistics for two independent samples, and the values of the Kolmogorov-Smirnov test comparing the structure in the two groups of subjects. Statistically important differences in the values of the financial ratios achieved by the enterprises—depending on their form of ownership—were also demonstrated. State-owned enterprises have a higher profit margin and a higher level of fixed assets, but a lower level of the net turnover ratio and a lower level of revenue compared with private companies.
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