| Summary: | This study is aimed to test the difference in performance among companies with
various types of ownership (foreign, state, and private) on a sample of 206 companies
listed in ISE (Indonesian Stock Exchange) between 1999-2006 resulting in 795 companyyear
observations. The ANCOVA model and multiple comparison methods are used to test
the hypothesis that private-owned companies have better performance than state-owned
enterprises and foreign-owned companies have better performance than private-owned
companies. Contrary with the hypothesis, the result shows that state-owned enterprises
have better performance than priva1e-owned companies. The possible explanationfor this
is because state-owned enterprises have more experience than private-owned companies
(based on LogAge). State-owned firms may get some special facilities (including the
easiness to get debt funding) from government. The result also shows that foreign-owned
companies have better performance than private-owned companies which support the
hypothesis. Foreign-owned companies have more experience in managing enterprises than
private-owned companies. Furthermore,foreign-owned companies in some industries tend
to be more active in doing investment than private-owned companies. There are some
implications of these results. First, different ownership type gives different effect to the
company's performance. Sec.ond, government can consider foreign ownership in its
privatizationpolicy. .
Keywords: Ownership type, Performance, Experience, Investment.
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