State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector

This paper examines the effects of a negative macroeconomic shock on the financial performance of state-owned enterprises (SOEs) in infrastructure. It exploits the differential effects of a drastic fall in oil prices (in 2014–15) on SOEs in energy-...

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Main Authors:	Herrera Dappe, Matias, Musacchio, Aldo, Pan, Carolina, Semikolenova, Yadviga, Turkgulu, Burak, Barboza, Jonathan
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2022
Subjects:	MACROECONOMIC SHOCK STATE-OWNED ENTERPRISE INFRASTRUCTURE PRIVATE UTILITIES PUBLIC UTILITIES ECONOMIC CRISIS
Online Access:	http://documents.worldbank.org/curated/en/860131647884943680/State-Owned-Enterprises-as-Countercyclical-Instruments-Experimental-Evidence-from-the-Infrastructure-Sector http://hdl.handle.net/10986/37202

id	okr-10986-37202
recordtype	oai_dc
spelling	okr-10986-372022022-03-24T05:10:49Z State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Turkgulu, Burak Barboza, Jonathan MACROECONOMIC SHOCK STATE-OWNED ENTERPRISE INFRASTRUCTURE PRIVATE UTILITIES PUBLIC UTILITIES ECONOMIC CRISIS This paper examines the effects of a negative macroeconomic shock on the financial performance of state-owned enterprises (SOEs) in infrastructure. It exploits the differential effects of a drastic fall in oil prices (in 2014–15) on SOEs in energy-rich countries relative to SOEs in non-energy-rich countries, matching firms based on their fuel expense ratio. The results—based on a balanced sample using coarsened exact matching and a differences-in-differences estimation—indicate that fully owned SOEs (FSOEs) that suffered a negative macroeconomic shock performed worse than those that did not. FSOEs that suffered a shock also received large fiscal transfers from the government to cope with the shock for three years after the shock. Despite the transfers, they reduced their capital expenditures as a consequence of the shock. 2022-03-23T19:19:53Z 2022-03-23T19:19:53Z 2022-03 Working Paper http://documents.worldbank.org/curated/en/860131647884943680/State-Owned-Enterprises-as-Countercyclical-Instruments-Experimental-Evidence-from-the-Infrastructure-Sector http://hdl.handle.net/10986/37202 English Policy Research Working Paper;9971 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	MACROECONOMIC SHOCK STATE-OWNED ENTERPRISE INFRASTRUCTURE PRIVATE UTILITIES PUBLIC UTILITIES ECONOMIC CRISIS
spellingShingle	MACROECONOMIC SHOCK STATE-OWNED ENTERPRISE INFRASTRUCTURE PRIVATE UTILITIES PUBLIC UTILITIES ECONOMIC CRISIS Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Turkgulu, Burak Barboza, Jonathan State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector
relation	Policy Research Working Paper;9971
description	This paper examines the effects of a negative macroeconomic shock on the financial performance of state-owned enterprises (SOEs) in infrastructure. It exploits the differential effects of a drastic fall in oil prices (in 2014–15) on SOEs in energy-rich countries relative to SOEs in non-energy-rich countries, matching firms based on their fuel expense ratio. The results—based on a balanced sample using coarsened exact matching and a differences-in-differences estimation—indicate that fully owned SOEs (FSOEs) that suffered a negative macroeconomic shock performed worse than those that did not. FSOEs that suffered a shock also received large fiscal transfers from the government to cope with the shock for three years after the shock. Despite the transfers, they reduced their capital expenditures as a consequence of the shock.
format	Working Paper
author	Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Turkgulu, Burak Barboza, Jonathan
author_facet	Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Turkgulu, Burak Barboza, Jonathan
author_sort	Herrera Dappe, Matias
title	State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector
title_short	State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector
title_full	State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector
title_fullStr	State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector
title_full_unstemmed	State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector
title_sort	state-owned enterprises as countercyclical instruments : experimental evidence from the infrastructure sector
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/860131647884943680/State-Owned-Enterprises-as-Countercyclical-Instruments-Experimental-Evidence-from-the-Infrastructure-Sector http://hdl.handle.net/10986/37202
_version_	1764486714507657216

State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector

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