Corporate Governance and Hybridity of State-owned Enterprises

Abstract

The reasons for state ownership may wax and wane over time, but state-owned enterprises (SOEs) appear to be an enduring feature of the economic context and will remain an influential force globally for some years to come. SOEs are enterprises in which the state has significant control through full, majority, or significant minority ownership. Corporate governance of SOEs continues to be a major challenge in many countries. In 2015, the OECD published a set of recommendations for corporate governance within SOEs, but there are continuing questions about which corporate governance models, mechanisms and processes public authorities and SOEs’ boards could use to promote effective, efficient and sustainable provisions of public services. Recent years have witnessed a growing interest in understanding SOEs as hybrid organizations, since they bridge public and commercial spheres in terms of objectives, financing, ownership and governance structure.