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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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Executive summary

This book provides a comparative mapping of relevant national experiences in broadening the ownership of state-owned enterprises (SOEs) through the practice of listing. It is organised around three chapters. The first chapter provides an overview of the ownership landscape of listed majority or partly state-owned enterprises around the world. It explores trends across OECD and major emerging markets. The second chapter explores the various national circumstances that influence a government decision to list. It walks through the listing process to understand how the nature of State participation may be a differentiating factor; it also draws some conclusions as to whether listing can serve to raise governance standards and improve company performance, drawing on diverse national experiences post-public offering. The final chapter provides detailed case studies of China (People’s Republic), India, New Zealand, Poland and Turkey. The main findings are summarised below.

English

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