This study investigates the effect of ownership on firm performance of state-owned and non-state-owned enterprises in elected G20 countries and across the development spectrum. Annual financial and accounting data from the period 2011-2015 are compiled for 252, state-owned and 6503, non-state-owned enterprises. The empirical results show that state ownership and firm performance are negatively associated with selected G-20countries. This is also confirmed when countries are considered with respect to their level of development except for High-Income countries. The poor performance of state-owned enterprises in less developed countries can be justified by the argument that state-owned enterprises suffer from the intervention of self-oriented politicians, which leads to lower-than-expected performance.
1-Yusuf Amin PhD. Scholar, Eastern Mediterranean University Famagusta, North Cyprus. 2-Syed Imran Khan Lecturer, IBL, Abdul Wali Khan University, Mardan, KP, Pakistan.3-Noor Hassan Lecturer, Department of Management Sciences, Timergara Campus, Abdul Wali Khan University, Mardan, KP, Pakistan.
Firm Performance; State Ownership; Development Spectrum; Leverage