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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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Preface

The global landscape of publicly listed companies is characterised by a significant number of partly state-owned companies. In many of these companies, the State maintains effective control without being a majority owner. In developed economies, the State is invested in listed companies that represent six percent of total market capitalisation. In emerging economies, this share is estimated to be three to four times higher and likely to grow as countries with large state-owned sectors use partial stock market listing as a preferred method of disinvestment by the State.

English

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