Does Ownership Structure Matter? A Case Study on Business Performance of Two Accounting Companies
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arXiv
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| Main Authors: | , , , , , |
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| Format: | Preprint |
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2024
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| _version_ | 1866912041936093184 |
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| author | Ghezzi, Reetta Marjanen, Sanni Laine, Teemu Virta, Tatu Vilpponen, Hannu Mikkonen, Tommi |
| author_facet | Ghezzi, Reetta Marjanen, Sanni Laine, Teemu Virta, Tatu Vilpponen, Hannu Mikkonen, Tommi |
| contents | Many public organisations procure a substantial amount of goods and services from in-house companies. When providing their goods and services, those companies are supposed to fulfil objectives set for them and for the wider entity, including in particular cost-effectiveness. This paper examines the performance of selected in-house companies both by analyzing the externally reported financial performance (top-down) and analyzing the internal operations and related performance (bottom-up). Based on the analysis, it is discussed, 1) how the in-house companies fulfil their assigned tasks as publicly owned entities and 2) how these in-house companies and their performance should be controlled by public bodies. Methodologically the paper takes advantage of two cases of accounting companies: one publicly owned in-house company and another private company. As a conclusion, in this case top-down analysis reveals inefficiencies which are further explored via bottom-up analysis. In this case, privatization leads to enhanced business performance. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2409_12551 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Does Ownership Structure Matter? A Case Study on Business Performance of Two Accounting Companies Ghezzi, Reetta Marjanen, Sanni Laine, Teemu Virta, Tatu Vilpponen, Hannu Mikkonen, Tommi General Economics Economics Many public organisations procure a substantial amount of goods and services from in-house companies. When providing their goods and services, those companies are supposed to fulfil objectives set for them and for the wider entity, including in particular cost-effectiveness. This paper examines the performance of selected in-house companies both by analyzing the externally reported financial performance (top-down) and analyzing the internal operations and related performance (bottom-up). Based on the analysis, it is discussed, 1) how the in-house companies fulfil their assigned tasks as publicly owned entities and 2) how these in-house companies and their performance should be controlled by public bodies. Methodologically the paper takes advantage of two cases of accounting companies: one publicly owned in-house company and another private company. As a conclusion, in this case top-down analysis reveals inefficiencies which are further explored via bottom-up analysis. In this case, privatization leads to enhanced business performance. |
| title | Does Ownership Structure Matter? A Case Study on Business Performance of Two Accounting Companies |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2409.12551 |