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Broadening the Ownership of State-Owned Enterprises

A Comparison of Governance Practices

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The State continues to remain an important shareholder in listed companies worldwide, especially among emerging economies, which rely increasingly on mixed-ownership models. With the benefit of hindsight and more recent examples, this book provides fresh perspectives on the motivation to list state-owned enterprises (SOEs) and the process it entails. Drawing from the experiences of five economies (People's Republic of China, India, New Zealand, Poland and Turkey), the book concludes that broadened ownership generally has a positive impact on the governance and performance of these companies. However, country practices show that the act of listing cannot guarantee that these companies are completely averse to State interests; and deviations from sound corporate governance practices, as enshrined in the OECD Guidelines on Corporate Governance of SOEs, can in some cases, raise concerns with regards to non-State shareholder rights, commercial orientation, board independence, conflicting State objectives, transparency, disclosure and more.

English

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Case studies of broadening ownership of state-owned enterprises

This chapter provides detailed case studies of China, India, New Zealand, Poland and Turkey, based on their recent experiences in broadening the ownership of state-owned enterprises. Each case study is organised around four sections focusing on: (i) the general context and landscape of listed companies, including national circumstances that influenced the government’s decision to list; (ii) an overview of the “pre-IPO phase” and the factors considered to be important to ensure a successful share offering; (iii) an overview of the “going to the stock market” phase, and the various public and fiscal policy considerations that may have influenced of the timing and organisation of the share offering(s); and, finally (iv) an assessment of the outcome of share offerings, including on performance and governance.

English

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