Asset productivity, profitability, and firm value: can state-owned companies outperform non-state-owned companies?

State-owned companies/enterprises (SOEs), especially "state-owned limited liability companies" have the primary objective of generating profits. Some SOEs have been registered in the capital market, and as a consequence, SOEs should be able to compete with non-state-owned companies/enterprises (Non-SOEs). This study examines whether SOEs are able to outperform Non-SOEs. Using a sample of 297 observations consisting of 99 SOEs and 198 Non-SOEs in the period 2012-2016, the results of this study show that SOEs are more productive in using assets and have higher corporate value than Non-SOEs, and the association between asset productivity with firm value SOEs is higher than that when the sample size is relatively larger. Although more productive, SOEs do not have higher profitability compared to Non-SOEs, and the association between profitability with firm value for SOEs is not different from the association between profitability with for NonSOEs. These findings suggest that SOEs need to maintain their superiority in achieving asset productivity but also need to improve their ability to generate profits in line with SOE objectives