Value Relevance of Government Ownership of Equity (Evidence from Russian Listed Companies)

HSE Economic Journal Pub Date : 2019-01-01 DOI:10.17323/1813-8691-2019-23-2-314-330

A. Maga, E. Baranova, Zhargal Tumunbayarova

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引用次数: 0

Abstract

The impact of government ownership of a firm’s equity has generated much discussion in finance, economics, and politics. Extant literature provides evidence of both positive and negative effect of government ownership on the market value of firms with multiple reasons in favor of both effects. There has also been re search on how such effects may differ in different markets. This paper aims to explore value-relevance in Russian financial markets. We are exploring the relationship between government ownership of a firm’s equity on its market value in Russia with the view of answering the research question of how investors in Russia perceive the fact and degree of government ownership on equity measured through the market value of equity. We are using a sample of 159 Russian listed companies to identify relationships between market value and government ownership of equity. Previous studies support a positive relationship between such variables, however evidence from Russian listed firms proves otherwise. We find little statistically significant evidence of such association in the market in general, how ever the industry effect proved to be significant; we find that government control is severely penalized in manufacturing, while rewarded in service sectors; this effect also depends on the concentration of government ownership. This research connects to the efficient market hypothesis (EMH).

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政府股权的价值相关性(来自俄罗斯上市公司的证据)

政府拥有公司股权的影响在金融、经济和政治领域引发了许多讨论。现有文献提供了政府所有权对企业市场价值的正面和负面影响的证据，并且有多种原因支持这两种影响。也有研究表明，在不同的市场中，这种影响可能会有所不同。本文旨在探讨俄罗斯金融市场的价值相关性。我们正在探索俄罗斯政府对公司股权的所有权与其市场价值之间的关系，以回答俄罗斯投资者如何感知通过股权市场价值衡量的政府对股权的所有权事实和程度的研究问题。我们使用159家俄罗斯上市公司的样本来确定市场价值与政府股权之间的关系。先前的研究支持这些变量之间的正相关关系，然而来自俄罗斯上市公司的证据证明并非如此。我们在一般市场中发现很少有统计上显著的证据表明这种关联，无论行业效应如何证明是显著的;我们发现，政府控制在制造业受到严重惩罚，而在服务业受到奖励;这种效应还取决于政府所有权的集中程度。本研究与有效市场假说(EMH)有关。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

HSE Economic Journal Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.10

自引率

0.00%

发文量

期刊介绍： The HSE Economic Journal publishes refereed papers both in Russian and English. It has perceived better understanding of the market economy, the Russian one in particular, since being established in 1997. It disseminated new and diverse ideas on economic theory and practice, economic modeling, applied mathematical and statistical methods. Its Editorial Board and Council consist of prominent Russian and foreign researchers whose activity has fostered integration of the world scientific community. The target audience comprises researches, university professors and graduate students. Submitted papers should match JEL classification and can cover country specific or international economic issues, in various areas, such as micro- and macroeconomics, econometrics, economic policy, labor markets, social policy. Apart from supporting high quality economic research and academic discussion the Editorial Board sees its mission in searching for the new authors with original ideas. The journal follows international reviewing practices – at present submitted papers are subject to single blind review of two reviewers. The journal stands for meeting the highest standards of publication ethics.