# **4.2 Data**

In this study, the impact of corporate governance on SOE performance is investigated primarily using data on SOEs in Korea. Most data for the study are obtained from an online management information disclosure system (the ALIO system).<sup>2</sup> The ALIO system, established and operated by the MoSF, provides financial and nonfinancial management information at the individual firm level for the latest five years. All SOEs designated by the Act on the Management of the Public Institutions are required to disclose data on ALIO and on their own website. The information disclosed in the ALIO system includes the number of employees, shareholders, and shares; remuneration and benefits of executives and employees; the number of board members and nonexecutive directors; the job experience, terms, and gender of the CEO and board members; and membership and collective bargaining agreement of the labor union. Financial information such as assets, equity, liability, revenue, profits, audit reports, and investment is also disclosed through the ALIO system. For this study, data on CEO duality, number of executive and nonexecutive directors, assets, equity, debt, profits, and operation years were obtained directly from the ALIO system. Data on disclosure inspection were obtained from the MoSF.

This paper uses various measures of SOE performance, including financial performance, performance evaluations, and customer satisfaction survey results. Financial performance data such as return on assets (ROA) and the debt ratio are calculated using financial data obtained from the ALIO system. Performance evaluations are conducted annually by the MoSF for all firms categorized as either PCs or QGIs. All 116 SOEs from these two categories were evaluated for performance in 2015. The evaluation assesses the firm’s annual performance against preset performance indicators on leadership, management system, and core business performance. This evaluation examines whether the complex objectives of SOEs, such as financial performance and social objectives, have been met fully in that year. An annual SOE customer satisfaction survey, also conducted by the MoSF, assesses the level of customer satisfaction with SOE services via phone interview, face-to-face interview, or online survey of direct customers. In 2015, 180 SOEs were included in the customer satisfaction survey. SOEs’ performance evaluation grades have been obtained from the ALIO system, and customer satisfaction survey results from the Korea Institute of Public Finance.

**Table 3. Number of SOEs Participating in Disclosure, Performance Evaluation, and Customer Satisfaction Survey in the Republic of Korea**

|**Type of SOE**|**Designated**<br>**by the Act**|**Number of**<br>**Disclosed**<br>**in the**<br>**ALIO**|**SOEs in 2015**<br>**Performance**<br>**Evaluation**|**Customer**<br>**Satisfaction**<br>**Survey**|
|---|---|---|---|---|
|Public Corporations|30|30|30|24|
|Quasi-Governmental Institutions|86|86|86|84|
|Nonclassified Public Institutions|200|200|0|72|
|Total|316|316|116|200|

> 2 The All Public Information in One (ALIO) system can be accessed at the following address: http://www.alio.go.kr.

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