Subsidy Government Tax Effect and Management of Financial Distress State Owned Enterprises - Case Study Sector of Energy, Mines and Transportation

Assagaf, Aminullah (2017) Subsidy Government Tax Effect and Management of Financial Distress State Owned Enterprises - Case Study Sector of Energy, Mines and Transportation. International Journal of Economic Research, 14 (7). ISSN 0972-9380

Preview

Text DOC-20170519-WA0033.pdf Download (608kB) | Preview

Abstract

This study was motivated by the phenomenon of SOE sectors of energy, mining and transportation are very important role in social life and national economic development, but experiencing difficult conditions in financial distress position so that some of them are increasingly dependent on the state budget funding. While others have not been able to conduct its operations optimally as the others. This is what is to be examined in a study by focusing some of the variables that are relevant to determine its role in influencing the level of financial distress faced by the company. The findings indicate that the variable public service obligation or the state budget subsidies (X1PSOt) negative effect were significant, variable tax management (X2TAMt) a significant negative effect, and variable financial performance operational (X5FOPt) positive or negative influence on the financial distress the energy sector, mining and transport within the SOE. While other variables did not influence significantly the effect on the company’s financial distress in the sector observed. Policy implications for the management of SOEs is presumably noticed the variable coefficients in the policy of increasing the level of financial distress or avoid financial difficulties. Keywords: Agency theory, signaling theory, and financial distress.

Actions (login required)

View Item