Determinant of state-owned enterprises financial health: Indonesia empirical evidence

This research is motivated to study the phenomenon of the financial health of state-owned enterprises (SOEs) who are healthy but still dependent on government subsidies. Based on these phenomena, the aim of this study is to determine the factors that affect the company’s financial health. In order t...

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Autores principales:	Nur Sayidah, Aminullah Assagaf, Bayu Taufiq Possumah
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2019
Materias:	financial health earnings management subsidy Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/6ff7d9d4f99845d5bcfcd26570e42d91
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spelling	oai:doaj.org-article:6ff7d9d4f99845d5bcfcd26570e42d912021-12-02T16:42:10ZDeterminant of state-owned enterprises financial health: Indonesia empirical evidence2331-197510.1080/23311975.2019.1600207https://doaj.org/article/6ff7d9d4f99845d5bcfcd26570e42d912019-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2019.1600207https://doaj.org/toc/2331-1975This research is motivated to study the phenomenon of the financial health of state-owned enterprises (SOEs) who are healthy but still dependent on government subsidies. Based on these phenomena, the aim of this study is to determine the factors that affect the company’s financial health. In order to achieve this aim, the present research will employ the purposive sampling method of seven SOEs with observations during the last 11 years. The data analysis employed involves the use of linear regression model and its management through software SPSS-Amos 23. As a result, the study found that subsidy is significant and negatively affects financial health, which means that the financial health of the SOEs is getting down when funding is still maintaining subsidy every year. Instead, financial health would be enhanced if the government limits the subsidies gradually and gives broad authority to decide on the pricing structure and control of resources to support the cost of efficiency. The study also found that firm size strengthens the link between subsidies to financial health with a positive coefficient and is exhibited significantly, which means that the larger the firm size, the stronger the effect of subsidies on the financial health SOEs. This means that the SOEs that have a good asset capability tend to have a better financial health, especially because efficient opportunities are supported by the control of resources and a more economical business scale.Nur SayidahAminullah AssagafBayu Taufiq PossumahTaylor & Francis Grouparticlefinancial healthearnings managementsubsidyBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 6, Iss 1 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	financial health earnings management subsidy Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	financial health earnings management subsidy Business HF5001-6182 Management. Industrial management HD28-70 Nur Sayidah Aminullah Assagaf Bayu Taufiq Possumah Determinant of state-owned enterprises financial health: Indonesia empirical evidence
description	This research is motivated to study the phenomenon of the financial health of state-owned enterprises (SOEs) who are healthy but still dependent on government subsidies. Based on these phenomena, the aim of this study is to determine the factors that affect the company’s financial health. In order to achieve this aim, the present research will employ the purposive sampling method of seven SOEs with observations during the last 11 years. The data analysis employed involves the use of linear regression model and its management through software SPSS-Amos 23. As a result, the study found that subsidy is significant and negatively affects financial health, which means that the financial health of the SOEs is getting down when funding is still maintaining subsidy every year. Instead, financial health would be enhanced if the government limits the subsidies gradually and gives broad authority to decide on the pricing structure and control of resources to support the cost of efficiency. The study also found that firm size strengthens the link between subsidies to financial health with a positive coefficient and is exhibited significantly, which means that the larger the firm size, the stronger the effect of subsidies on the financial health SOEs. This means that the SOEs that have a good asset capability tend to have a better financial health, especially because efficient opportunities are supported by the control of resources and a more economical business scale.
format	article
author	Nur Sayidah Aminullah Assagaf Bayu Taufiq Possumah
author_facet	Nur Sayidah Aminullah Assagaf Bayu Taufiq Possumah
author_sort	Nur Sayidah
title	Determinant of state-owned enterprises financial health: Indonesia empirical evidence
title_short	Determinant of state-owned enterprises financial health: Indonesia empirical evidence
title_full	Determinant of state-owned enterprises financial health: Indonesia empirical evidence
title_fullStr	Determinant of state-owned enterprises financial health: Indonesia empirical evidence
title_full_unstemmed	Determinant of state-owned enterprises financial health: Indonesia empirical evidence
title_sort	determinant of state-owned enterprises financial health: indonesia empirical evidence
publisher	Taylor & Francis Group
publishDate	2019
url	https://doaj.org/article/6ff7d9d4f99845d5bcfcd26570e42d91
work_keys_str_mv	AT nursayidah determinantofstateownedenterprisesfinancialhealthindonesiaempiricalevidence AT aminullahassagaf determinantofstateownedenterprisesfinancialhealthindonesiaempiricalevidence AT bayutaufiqpossumah determinantofstateownedenterprisesfinancialhealthindonesiaempiricalevidence
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Determinant of state-owned enterprises financial health: Indonesia empirical evidence

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