It is often taken as a stylized fact that state ownership harms the financial performance of firms. Yet we show that this relationship varies greatly across national contexts. We argue that the political ideology of the government, both independently and in conjunction with political institutions (state capacity and political constraint), affects this relationship. We test our hypotheses using meta-analytical techniques on an international sample spanning 53 years and 131 countries. Our research sheds further light on the state ownership – firm performance relationship by highlighting the role of the political ideology of the government, and its interactions with political institutions.

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Keywords State capitalism, State ownership, Meta-analysis, Institution-Based view, Political institutions, Public enterprise
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Journal Journal of World Business
Aguilera, R., Duran, P., Heugens, P.P.M.A.R, Sauerwald, S., Turturea, R., & VanEssen, M. (2020). State ownership, political ideology, and firm performance around the world. Journal of World Business. doi:10.1016/j.jwb.2020.101113