Effect of the Corporate Governance Practices on State-Owned Automobile Industry in Uzbekistan

Abstract

This research examined the effect of the corporate governance practices on the state-owned automobile industry in Uzbekistan. The paper utilized primary data obtained from the companies operating under Uzautosanaot JSC in Uzbekistan. We analyzed the data through SPSS statistical software applying the multiple regression analysis based on ordinary least squares method. We introduced various sub-hypotheses where the substituting variables were mediating through the main hypothesis to establish the correlations between corporate governance and operational performance. We hypothesized that there is a positive relationship between corporate governance and competitive advantage when mediated with technical qualifications, political and economic certainties, policy inconsistencies and government bureaucracy, and employees’ satisfaction and there is a positive relationship between competitive advantage and operational performance when mediated through accessing capital to finance, access to modern technology, and infrastructure availability. The results of the analysis proved that there is indeed a positive relationship between operational performance and export growth when mediated with productivity of employees, customer satisfaction, cost reduction, and return on investment. The paper also suggested that in order to reap the benefits of technical expertise and to ensure smooth running of the business, the overseer must watch out for any form of nepotism or cronyism. The government should also ensure political stability.