Exercise of ownership rights and efficiency in state-owned enterprises: the case of Uruguay

Purpose - This paper aims to analyze the relevance of the exercise of ownership rights on the management of state-owned enterprises (SOEs). Design/methodology/approach - The author exploited a "natural experiment" observed in Uruguay. The author developed an empirical method that to compare the results of SOEs between two five-year presidential terms with de facto differences with regard to the exercise of ownership rights. Findings - The author found evidence suggesting that the poor exercise of ownership rights has a negative impact on the results of SOEs. Research limitations/implications - The results of this study are based exclusively on the Uruguayan case and are limited to the comparison between two five-year terms. Practical implications - A holding of SOEs that holds and exerts ownership rights emerges as a natural alternative to improve efficiency. Originality/value - The exercise of ownership rights in SOEs has a significant impact on its performance indicators.