The Role of Corporate governance structures in Influencing on the performance of State Owned Entities (original) (raw)
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2020
I declare that "The role of governance structures, ownership models and organising models in mitigating corporate governance problems of state-owned enterprises" is my own work and that all the sources that I have used or quoted have been indicated and acknowledged by means of complete references. I further declare that I submitted the dissertation to originality checking software and that it falls within the accepted requirements for originality. I further declare that I have not previously submitted this work, or part of it, for examination at Unisa or at any other higher education institution.
Wahana: Jurnal Ekonomi, Manajemen dan Akuntansi
The current study aims to develop the framework for corporate governance and to assess the corporate governance scoring trend based on R-MBU/2012 in publicly traded SOEs. The study adopts mixed qualitative-quantitative methods. The qualitative method is based on grounded theory and interpreted by way of constructivist approach, whereas the quantitative method uses the technique of descriptive statistics. The data were obtained from R-MBU/2012; the sample consists of 18 SOEs listed on the Indonesia stock exchange. The results identify the relationship between variabilities in the roles of shareholders, the General Meeting of Shareholders, Board of Commissioners (BOC), Board of Directors (BOD), corporate commitment and culture, and information disclosure as the determining indicator of the level of good corporate governance implementation. Five banking companies, 2 manufacturing companies, and 3 companies in service industry are all scored ‘very good’ for the implementation of good co...
Corporate governance model of a state-owned enterprise: evidence from an Asian emerging market
European Journal of Marketing, 2014
Purpose of the study-Corporate governance has attracted much attention and is still a hot topic among shareholders, directors and company regulators. Failure of large corporations in the past decades not only affected the shareholders and investors, rather it adversely affects all the stakeholders. Good corporate governance practices are argued to curb company's failures due to fraudulent activities, collusion schemes and mismanagement. The purpose of this study is to examine a state-owned enterprise corporate governance model. There is still a gap in the corporate governance model literature especially in the context of an emerging Asian market. This study is embarked to fill the gap. Design/Methodology/Approach-The study took the qualitative approach. It utilized case study method. As it is a single case study, only one sample is chosen using the convenience or purposive sampling technique. Informal and semi-structured interviews are conducted with two representatives from the company. Data is also sourced from published documents related to the company. The company is designated as Company R as the study is not allowed to reveal the company's real name. Findings-The study found that the corporate governance structure of the board is of unitary or one tier board. This is common in the Anglo American settings. The Board of Directors (BoD) is accountable to the shareholder. They are entrusted with the responsibilities to manage the business. The board member are selected and appointed by the government. Most of them are senior government officials with some representation from the industry. They are chosen from highly capable and trustworthy government officers to represent and safeguard the government's interest in the company. The shareholding of the company is 100% owned by the government. Therefore, any issues with minority shareholders do not exist. Representatives of the government sit on the board. They are all nonexecutive directors. The company did not practice Chief Executive Officer (CEO) duality roles (CEO and Chairman of the board). As for the structure of ownership, it is a typical company with the other Asian state-owned enterprises where the state has full ownership and control of the company. Hence, the company board is under the state direct control. They are also required to submit the annual report and audited financial statements every year. Apart from that, the board is also required to send company's performance and financial standing on a regular basis to the government. Limitation /scope of the study-The study faced several limitations in terms of getting information from the company as most information especially financials are regarded as confidential. Nevertheless, the study manages to get the necessary information for the purpose of this research. The data collected are just enough to fulfil the research objectives and answer the research questions on examining the corporate governance model. The sample of the study
The State as a Driver for Good Corporate Governance of State-Owned Enterprises
Studies in Business and Economics
The state, represented by the legislature and the executive power, is committed to create a pattern for good corporate governance of state-owned enterprises (SOEs). First attempt to formulate such principles for private companies listed in the stock exchange emerged in the UK. Considering the size and importance of state sector, the Organization for Economic Co-operation and Development (OECD) gradually adopted and recommended similar principles for SOEs. They are the most commonly recognized and accepted pattern for good corporate governance of SOEs throughout the world. The study aims to evaluate the current level of compliance with these principles in Bulgaria (2016–2018) by state authorities and to find the gaps in their implementation. To achieve this aim, an original methodology has been developed derived on OECD principles and the use of expert assessment. The study found that the state (Parliament and Council of Ministers) has established in relatively high degree compliant ...
Insights on Corporate Governance Practices of State-Owned Enterprises (SOEs)
2022
Research aims: This paper undertakes a cross-country comparative analysis of corporate governance of state-owned enterprises (SOEs) in Singapore and South Africa, two countries using two different models for organising SOEs, with specific reference to agreement with the World Bank’s themes on Framework for Good Corporate Governance Practices for SOEs. The aim of this paper is to identify similarities and differences in practice and to document how the states have fared using different models. Design/Methodology/Approach: The paper deploys a pragmatic mixed methods approach explored in two empirical phases, the first phase conducted between the second quarter of 2017 and the third quarter of 2019, with the second phase conducted between the third and fourth quarters of 2019, to understand the practices utilised by South African and Singaporean SOEs. The data emerging from these two phases, were compared to the Framework for Good Corporate Governance Practices for SOEs issued by the W...
Fordham Int'l LJ, 2007
This Article argues that the initiatives adopted in order to make parastatals more efficient are inadequate and will not realize the intended objectives unless the chief executives of parastatals are hired on a competitive basis, given more autonomy and the government is committed not only to designing performance contracts that set realistic standards, but also enforcing them strictly. It also contends that there is a need to streamline the multiple regulations that govern parastatals and reform the corporate regulatory framework of the private sector in order to raise standards of corporate governance and, as a result, ensure that the privatized services are managed prudently.
CORPORATE GOVERNANCE OF STATE-OWNED ENTERPRISES: NATIONAL PRACTICES OF THE BOARD
The purpose of this article is to present good practices, experience and ideas related to the organization and functioning of the board of state-owned enterprises. Corporate governance practices are represented by three characteristics of the board: nomination, composition and remuneration. The results of the article reveal a wide variety of board practices in different countries. They are determined by the state ownership policy of the respective country. Various practices and experiences are presented, which can be included in a kind of menu for selecting appropriate tools to promote and strengthen the boards, and thus the corporate governance of state-owned enterprises in Bulgaria.
Corporate governance impact on state-owned enterprise performance in a least developed economy
South African Journal of Business Management, 2023
Purpose: The main objective of the study was to investigate how corporate governance affects the performance of state-owned enterprises (SOEs) in a least developed economy. Design/methodology/approach: Both primary and secondary data from nine state-owned companies that operated between 2001 and 2016 were analysed in the study. The investigation used a quantitative methodology. Fixed effects, random effects and generalised method of moments (GMM) estimations were used to conduct regression analysis. Findings/results: The findings show that corporate governance characteristics affect SOE performance in a least developed economy. The performance of SOEs is influenced favourably by board structures, director tenure, reduced government ownership and leverage. Conversely, increased state ownership leads to subpar performance. The study also reveals that the presence of civil servants and directors with political affiliations in government-controlled companies has a negative effect on enterprise value. Practical implications: The use of multiple case studies to investigate SOEs in their natural setting has given some insights for both professional managers and policymakers interested in developing corporate governance frameworks to improve SOEs value in least developed economies, particularly in sub-Saharan Africa, even though the results are limited in terms of statistical generalisation because the study was based on a single country. Originality/value: The study fills a gap in the literature about how SOE performance is affected by corporate governance in least developed nations, where such research is underdeveloped. Keywords: corporate governance; ownership structure; board attributes; capital structure; disclosure; state-owned enterprises; performance.
Corporate Governance and public sector entities
Public entities' Corporate Governance is a concept that is gaining more and more field both in specialized literature and in practice. The public bodies' Corporate Governance as leadership and control method involves a set of clear rules and principles (integrity, honesty / sincerity, transparency and responsibility), clear risk management and control mechanisms, elements needed to achieve the purpose of public entities, which is satisfying public needs. Is Corporate Governance necessary within public entities? Can it contribute to the efficient use of public funds, the decrease of expenses or budget deficits, the elimination of corruption and the increase in performance in public entities? The purpose of the paper is to achieve an academic analysis of the development process of the Corporate Governance concept in public entities and of how it is an efficient governance form. The research methodology was based on consulting specialized literature, respectively using the historical method for pointing out the milestones in the Corporate Governance concept evolution and the comparative method for the analysis of advantages and disadvantages of corporate governance in the private sector and how this model can be implemented in the public sector.