The effects of government ownership on financial performance : a study of the aquaculture industry

Abstract

This paper empirically investigates the effects of government ownership on financial performance within the seafood industry. Looking at the period of 2005-2012 we measure financial performance using Tobin’s Q and return on assets. Our dataset consists of quarterly data from eleven companies listed on the Oslo Seafood Index. Using an econometrical approach we are not able to conclude that government ownership is associated with significantly negative performance. These findings are in line with previous studies on government ownership in Norway. However, we find that government ownership has a significant positive effect on return on assets during periods when EBIT-margins are low.