Privately owned firms have been believed to be more efficient and perform better than
state owned firms. Despite the notion, the evidence on state owned firms in Korea is scant.
After comparing the performances of privately owned firms and government owned firms,
we find that privately owned firms have lower profitability with a higher debt ratio. However, among state owned firms, both partial and full privatization improved profitability while
reducing employment and liabilities. In summary, our findings support the claim that the less
controlled a state owned firm is by the government, the more positive impact it will have on the firm performance.
State ownership and firm performance
Evidence from Korean SOEs
[Seoul]:KDI School of Public Policy and Management
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Entrepreneurship|
|Holding||KDI School of Public Policy and Management|