The State as a Driver for Good Corporate Governance of State-Owned Enterprises

Abstract

Abstract 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 with OECD principles of good corporate governance of SOEs pattern, while the ministries-principals of SOEs have insufficiently complied with these principles. They need to devote a lot of attention and endeavors to fill the gaps in complying with these principles and to create a modern corporate governance pattern for SOEs.