Governance Of State-owned Enterprises Research Articles

State Owned Companies in the European Gaming Market: Comparative Perspectives

Abstract This paper looks at different case studies of European lotteries operating games of chance for the public benefit. It takes the case studies of four national lotteries as most similar systems design comparative methodology to investigate the extent to which market structure and managerial strategy play a role in the profitability of the companies. The empirical data collected through process tracing, public statements and public records shows that while being bound to interact with each other, the market context does not dictate managerial strategies, and innovations in the latter offer very diverging results in terms of the bottom line of the different European lotteries operating games of chance. This paper contributes thus to the existing literature on market conditions for companies operating games of chance (e.g. Huttenen 2020, Grote & Matheson 2023, Clotfelter & Cook 1991) by developing a much-needed link to the academic literature on corporate governance in state-owned enterprises (e.g. Cao & Vittas 2017, Szarzec & Nowara 2017, Megginson & Netter 2019).

From Cadres to Managers: The Double-hundred Action Programme and China's State-owned Enterprise Reform

Abstract Reforming China's state-owned enterprises (SOEs) is a complex endeavour. Among recent initiatives, the double-hundred action (DHA) programme stands out for its ambition, especially in its aim to revamp corporate governance structures and management systems. A notable change is that top executive positions are now open to a wider and more diverse candidate pool and are no longer restricted to Party cadres. Based on fieldwork and interviews at a DHA-selected enterprise, this paper explores the DHA's impact on SOE functioning and governance. Our research reveals unanimous support among top executives for the policy, despite stringent performance appraisals and limitations on future promotion opportunities. The policy has significantly transformed recruitment, performance evaluation and remuneration within the enterprise under study. However, although top executive recruitment is no longer tied to Party membership, the Party still exerts its influence through key appointments on the board of directors.

Review of Asset Management Practice in Indonesian State-Owned Enterprise

This study examines Indonesian State-Owned Enterprises (SOEs) asset management methods, problems, and financial and operational performance effects. The report synthesizes case studies and academic research on how large organizations manage their huge and diverse asset portfolios and how governance, regulatory frameworks, and human resource practices affect their effectiveness. The research begins with case studies of talent management innovations from big Indonesian SOEs. These cases show how proactive human resource approaches can boost company commitment and reduce turnover, improving asset management efficiency. According to the research, governance and legal frameworks influence asset management techniques. Studies show that corporate governance quality affects SOE operational performance. The paper explores how reforms and legislation affect state asset management, highlighting the major changes in SOE governance and legal frameworks, particularly after economic and political reforms. Asset management difficulties for Indonesian SOEs include managing large and diverse asset portfolios, integrating modern management frameworks, and optimizing state asset revenue. According to the study, comprehensive asset management systems, governance transparency, and professional management can address these difficulties. The research examines how asset management strategies affect Indonesian SOE profitability, corporate governance, and performance measures. Strategic asset management boosts financial performance, especially profitability. SOE profitability is greatly affected by current asset and liability management. The study offers advice to Indonesian SOEs and policymakers. Enhancing financial and operational performance requires comprehensive asset management, governance changes, and strategic innovation. These efforts boost Indonesia's economy, demonstrating the importance of asset management in SOE performance.

Implementation of BUMN Minister Regulation Number 09/MBU/2012 Implementation of Good Corporate Governance in Bumida Insurance Companies

This research aims to determine the implementation of regulation-09/MBU/2012 concerning the Implementation of Good Corporate Governance in Bumida general insurance companies. The type of research used is empirical using statutory, conceptual and sociological approaches. The source of legal materials used is secondary data consisting of primary, secondary and tertiary legal materials and primary data. Based on the research results, it is known that the arrangements used in implementing the principles of implementing good corporate governance in Indonesia are regulated in the Minister of State-Owned Enterprises Regulation number PER-01/MBU/2011 with amendments to PER-09/MBU/2012 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises (BUMN). Furthermore, the principles for implementing good corporate governance in Indonesia are strictly regulated through the Decree of the Minister of BUMN Number Kep-117/M-MBU/2002 concerning the Implementation of Good Corporate Governance Practices in State-Owned Enterprises ( BUMN) which was then refined by Minister of State for BUMN Regulation Number: PER-09/MBU/2012 and Bumida has implemented good corporate governance as proven by the existence of an ISO certificate, if there is an ISO certificate it means it has been checked and has implemented the implementation of corporate governance which is good, the Mataram branch of Bumida Insurance is transparent on the financial side because it is a non-banking financial company. Bumida entered the FKLJK forum (financial services institution communication forum) which is directly supervised by the OJK.

Impact of implementing the Public Entities Corporate Governance Act (PECG Act) Chapter 10:31 by State Owned Enterprises (SOEs) in Zimbabwe.

The study sought to determine the impact of the Public Entities Corporate Governance Act Chapter 10:31(PECG Act ). The Act is the main piece of legislation governing corporate governance practices for State Owned Enterprises in Zimbabwe. In this view, the study adopted a mixed-methods approach in which pragmatism philosophy was applied. A convergent parallel design was used in which data was gathered using a structured questionnaire and an interview guide. The target population consisted of top and middle management, board members, board chairpersons, and CEOs of SOEs found in Zimbabwe. Using the sampling procedure developed by Krejcie and Morgan (1970), a sample size of 351 individuals was determined for quantitative data, and sixteen (16) interviews were done until saturation was reached. The research employed stratified random sampling for sampling respondents for quantitative data and purposive sampling was used for sampling respondents for qualitative data. SPSS version 23 was used to analyse quantitative data, whilst NVivo version 12 was used to analyse qualitative data. The main impact of the PECG Act was that it fosters accountability, transparency, and responsibility and encourages strategic planning for SOEs. The research also confirmed that reforms on restrictions on the remuneration of board members(RRORB) have a positive effect on corporate governance practices in SOEs, and reforms on dismissal and resignation (RDRBM) of board members lead to best corporate governance in SOEs. The study recommended that responsible authorities should make strict enforcement to comply with the dictates of the PECG Act. The study had a limitation that results from broad SOE categories may not be generalised to specific SOE categories.

Environmental governance, executive incentive, and enterprise performance: Evidence from Chinese mineral enterprises

The goal of China's development by 2035 is the widespread formation of green production and lifestyle. Enterprise is the most crucial micro subject in realizing a fundamental improvement in the ecological environment. However, corporate environmental governance has typical externalities regarding corporate profitability, especially for mining companies. This paper explores the relationship between enterprise environmental governance and enterprise performance from multi-dimensions based on the manually-collected microdata of 194 listed enterprises in the mining industry in Shanghai and Shenzhen A-shares from 2010 to 2016 (the corporate environmental data is provided up to 2016). This study's findings are as follows. (1) Enterprise environmental governance facilitates short-term enterprise performance, which verifies the “Porter hypothesis.” (2) The five sub-dimensions of enterprise environmental governance have an “enhancing effect” on short-term enterprise performance and a “decreasing effect” on long-term enterprise performance. (3) Moderating effect analysis shows that “executive compensation incentive” leads enterprise environmental governance to improve long- and short-term enterprise performances. In contrast, “equity incentive” inhibits its effect on short-term enterprise performance. (4) Environmental governance in state-owned enterprises significantly contributes to short-term performance. In non-state-owned enterprises, it significantly reduces long-term enterprise performance. Finally, corresponding policy implications and future research directions were recommended. Future initiatives must strengthen incentives for green innovation, accelerate the substitution of new energy sources, promote the green and digital transformation of mining enterprises, and improve carbon finance in the carbon market.

Research on the Impact of Party Organization Embedding on the Corporate Environmental Performance

The party organization’s participation in the governance of state-owned enterprises can affect corporate environmental performance. First of all, in terms of stakeholders’ theories, enterprises should not pursue the interests of shareholders in the traditional sense, but to maximize the overall interests of stakeholders. As a special group in China’s corporate governance, the party organization has the right to participate in the decision of major environmental matters on the corporate. At the same time, the party organization urges enterprises to support the policies of the party, play an important role in supervising the environmental performance of the enterprise, and then maintain the overall interests of the stakeholders. Secondly, under the framework of organizational legitimacy, the party organization embedded mainly through the supervision effect and checks and balance effects to improve the environmental performance of the enterprise. Therefore, this paper studies the relationship between party organizations participating in the governance of state-owned enterprises and corporate environmental performance. This paper argues that the "two-way entry" of the party organization has a positive correlation with the corporate environmental performance, that is, the higher the "two-way entry" of party organizations participating in the governance of state-owned enterprises, the higher the environmental performance of state-owned enterprises will be improved accordingly. Also, after further robustness tests, this conclusion is still established.

Enhancement of state-owned enterprises’ financial reporting through e-governance

State-owned enterprises in Zimbabwe often take long to report their financial statements due to unfunded policy mandates, weak governance, and a lack of capacity of governments to oversee the enterprises/parastatals. Information systems can help improve the operation of state enterprises and expedite financial reporting by interfacing e-governance and corporate governance. This paper aims to present a systematic empirical literature review to examine the role of corporate governance in the timeliness of financial reporting and opportunities of e-Corporate Governance in State-owned enterprises. Specifically, the proposed study’s motivation aroused from vast literature focusing on the role of corporate governance in the timeliness of financial reporting and opportunities of e-Corporate Governance in State-owned enterprises. The study reviewed some of the articles for literature that deliver robust suggestions on the timeliness of financial reporting and opportunities of e-Corporate Governance in State-owned enterprises. Findings suggest that effective corporate governance can improve the performance and accountability of state enterprises. E-corporate governance can help state enterprises report their financial statements promptly. Adoption of e-governance can improve corporate governance in state enterprises by providing best practices and independent oversight mechanisms.

Challenges Associated with Corporate Governance in State Owned Enterprises in Zimbabwe

Challenges Associated with Corporate Governance in State Owned Enterprises in Zimbabwe

The collaborative strategy of data governance of state-owned enterprises in China

The new transformation spawned by digitization brings a new change in the logic of data governance. In recent years, the state-owned enterprises (SOEs) of China has been strengthening the construction of data governance system, but there are still a series of key issues that need to be solved. It is urgent to carry out research on issues related to data governance, to play the data elements of the amplification, superposition and multiplier effect. This study analyzes the new requirements of data governance in the new situation and the reasons for the non-synergy of data governance of SOEs. Then this research proposes the collaborative optimization strategy of data governance in the SOEs. The main findings of this research are as followed: On the one hand, the reasons for the lack of synergy in the SOEs’ data governance are comprehensively analyzed. On the other hand, some key strategies for the optimization of the company’s data governance synergy are proposed. For example, this stuty proposes to build multilevel data governance internal market, design internal market transaction elements, create internal market operation management mechanism, establish internal market performance evaluation and assessment mechanism, and improve the internal market-oriented and efficient operation supporting capacity.

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

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.

Culture, scale and the adaptation of good governance: Insights from SOEs in Samoa and Tonga

This paper examines how state-owned enterprises (SOEs) in two Pacific countries approach principles and practices of governance in a context where concepts of good corporate governance are changing internationally. The research finds that corporate governance practice can be enhanced by the application of local cultural values and principles, and there are lessons from these two countries that could be shared more broadly. It largely draws on insights from interviews with current and former SOE chairs and directors, and senior government officials, from Tonga and Samoa. Although SOE boards in these two countries faced some challenges common in many parts of the world, they had to navigate particular local issues relating to cultural norms and expectations and the issue of scale. Based on findings from the interviews and drawing on Nicholson, Spiller and Pio’s research on ambiculturalism, and recent paradigm shifts in good governance thinking, this paper argues that these countries are actively adapting and innovating the corporate governance model to local social and cultural conditions. The research finds that the principles of good corporate governance can be dynamic and responsive, and they can (and should) be modified to fit local situations. These signal important assertive markers of ambiculturalism, and a reshaping of SOE governance with a Pacific flavour.

Barriers to effective corporate governance principles in state-owned enterprises in Zimbabwe

The purpose of this article is to discuss the barriers to effective corporate governance principles in state-owned enterprises (SOEs) in Zimbabwe in order to have an influence on policy debates. This study used a qualitative research approach, and a case study research design was followed, in order to attain the objective of the research. Semi-structured interviews were carried to get the views of the respondents on barriers to effective corporate governance principles in SOEs in Zimbabwe. Respondents chosen were members of the audit committees (ACs), permanent secretaries (PSs), chief executive officers (CEOs), senior managers (SMs), board of directors (BoDs) and chief audit executives (CAEs). Respondents were chosen due to their ability to act on the study’s findings and recommendations. Data was analysed using Atlas.ti version 8. The study revealed that there are cases of poor and mis-governance in SOEs in Zimbabwe. Egregious cases include non-adherence to corporate governance rules and laws, degenerating against the Public Finance Management Act, [Chapter 22:19] as well as paying ignore in the submission of the financial statements which are audited. The article therefore, recommends that for an emerging country like Zimbabwe to enjoy the advantages of effective corporate governance principles, reviewing the legislations which are currently there as well as strengthening the enforcement strategies of the regulatory institutions is of paramount importance. The findings are limited to a Zimbabwean case study alone. Be that as it may, great lessons can be drawn for other developing economies from the case study. Apart from classifying cases of poor or mal-governance in SOEs in Zimbabwe, the article gives recommendations for policy in-order to improve corporate governance in SOEs in Zimbabwe. There is a dearth of study on barriers to effective corporate governance principles in SOEs in Zimbabwe; therefore, there is a gap in the literature. Hence, the paper makes an original contribution to the literature. Finally, the paper advocates fruitful avenues for future research on the future of corporate governance.

Analysis on Corporate Governance of State-owned Enterprises

Corporate system has become one of the most important forms of economic organization in the modern enterprise system under the condition of market economy. Whether the corporate governance structure is perfect or not plays a decisive role in the normal operation and development of the economy. So far, the reform of state-owned enterprises has lasted for nearly 40 years, and the reform has made great achievements, but there is still a certain distance from the reform goal. The corporate governance problems of state-owned enterprises lead to the rights of state-owned enterprises cannot be fully realized and guaranteed. The Realistic Dilemma of Corporate Governance in China appears. This paper discusses the market disadvantages in the operation of state-owned property rights, the governance structure of state-owned enterprises, and the existing problems of state-owned enterprises, and how to overcome these disadvantages.

Reforms in the Management System in State Enterprises in Montenegro

The efficiency of each member of the management of state-owned companies with clients, ie users (citizens) of their services, is very important for business communication. Through a proactive relationship with the media, clients and taxpayers, the Department of Communications and International Cooperation contributes to establishing a positive atmosphere with the citizens of Montenegro. Scientific research on the subject of this paper will make a significant contribution by pointing out the way of working in state-owned enterprises, the importance of examples of six principles of the Organization for Economic Cooperation and Development (OECD), the benefits of corporate governance, and point out gaps and offer possible solutions. would contribute to improving the provision of services of general interest to the satisfaction of both the owner and the user of the public enterprise service. It is of great importance to point out the future legal solutions on the performance of communal activities to change the competence, and thus the management of state communal enterprises in Montenegro. The specific contribution of the research is reflected in the consideration of the reform of state-owned enterprises in Montenegro, needs and assumptions for reform, preparation of state-owned enterprises for knowledge-based society, informatization of state-owned enterprises, socially responsible business and their information system. By accepting the basic concept of quality and treating citizens and other users of their services in a different way, the work of state-owned enterprises must be better, faster and cheaper. Related to this is the hypothesis of this paper that the ruling parties and changes in the business environment inevitably require new concepts of governance and the six principles of OECD corporate governance in state-owned enterprises have not been applied.

Comparing corporate governance practices of state-owned enterprises (SOEs) in South Africa and Singapore

Research aims: This paper undertakes a cross-country comparative analysis of corporate governance of state-owned enterprises (SOEs) in South Africa and Singapore, two countries using two different models for organising SOEs, with specific reference to agreement with the themes identified in the World Bank’s Framework for good Corporate Governance practices for SOEs. The aim of this paper is to identify differences and similarities in practice and to document how the states have fared using different models.Design/Methodology/Approach: The paper deploys a pragmatic mixed methods approach conducted in two phases, 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 World Bank.Research findings: Findings suggest although South African SOEs have good corporate governance practices in place, Singaporean SOEs are better organised and governed compared with South African SOEsTheoretical contribution/Originality: This paper contributes to the scholarly discourse on SOEs in by expanding the discourse on public sector entrepreneurship and opening up new debates and research areas corporate governance of SOEs.

Governance of State-Owned Enterprises (SOEs) and the Economic System: Paradigm and Pragmatism of Indonesian Constitutional Economics

Governance of State-Owned Enterprises (SOEs) and the Economic System: Paradigm and Pragmatism of Indonesian Constitutional Economics

Will the Governance of Non-State Shareholders Inhibit Corporate Social Responsibility Performance? Evidence from the Mixed-Ownership Reform of China’s State-Owned Enterprises

Fulfilling social responsibilities in order to sustain development has increasingly become a strategic choice for companies. Good corporate governance can guarantee high corporate social responsibility performance. This paper selects state-owned enterprises listed on the Shanghai and Shenzhen A-Share market from 2013 to 2019 as samples and uses a panel data OLS regression model to empirically test the impact of the governance of non-state shareholders on the social responsibility performance of state-owned enterprises from two aspects of shareholding: structure and high-level governance. The results show that, first, the governance of non-state shareholders helps to improve the social responsibility performance of state-owned enterprises; second, that mechanism analysis indicates that non-state shareholders improve the social responsibility performance of state-owned enterprises by improving the internal control quality; and third, the impact of the governance of non-state shareholders on the social responsibility performance of state-owned enterprises is heterogeneous in three aspects: the degree of marketization, the level of product market competition, and the corporate profitability. This paper not only helps to clarify the factors which influence the social responsibility performance of state-owned enterprises, but also enriches studies on the economic consequences brought by non-state shareholders through participating in the governance of state-owned enterprises.

Convergence of corporate governance in state-owned enterprises: A case study in an emerging market using OECD Guidelines

This article investigates an under-researched area of government activity and corporate governance reform, namely, corporate governance in state-owned enterprises. State-owned enterprises (SOEs) form a significant part of the economy in many countries and particularly in Asia. This article contributes to the larger corporate governance convergence debate by investigating whether arrangements originally conceptualised in the private sector prior to going global have indeed gone global and extended into the public sector. The article approaches the problem by investigating three interrelated questions posed by Clarke (2011): whether convergence could occur, whether it is occurring and whether such convergence is a good thing. Using a combination of DiMaggio and Powell’s (1983) institutional framework, convergence theory and doctrinal methods, the article sets the Organisation for Economic Co-operation and Development (OECD) Guidelines on Corporate Governance of State-Owned Enterprises as a benchmark and assesses Philippine state-owned enterprise law and practices. The analysis revealed a high level of convergence. We find evidence that convergence was occurring by a series of high-level dialogues, that it was open and sufficiently non prescriptive to allow selective adoption and adaptation to local context. In evaluating the convergence, we believe that the benefit to the overall welfare of the Philippines outweighed the drawbacks

Principles of Corporate Governance of State-Owned Enterprises and its compliance in India

The article deals with the key points of the Guidelines on Corporate Governance for Central Public Sector Enterprises of India concerning the composition of a board of directors, audit, nominating and remuneration committees, subsidiaries. The author analyzes the level of compliance with these principles of 338 public sector enterprises, of which 255 were assessed by the Department of Public Enterprises and received grades from «poor» to «excellent». The article also discusses external and internal factors that may affect the level of compliance with the guidelines on corporate governance. Thus, the external factors include a big size of a company, experience, absence of major debt. The internal factors include reduction in a proportion of the State ownership, memorandums of understanding and the «ratna»-statuses. The last two factors were paid particular attention. The author concludes that the main obstacles to achieving desirable quality of corporate governance in the Indian central public sector enterprises are: (a) absence of ownership policy in public sector companies, defining the role and duties of the State as a shareholder, (b) accountability of public sector companies to many public authorities at the same time that almost negate corporate governance in its general understood sense, (c) the lack of operational and financial autonomy of a board of directors, (d) non-compliance with the number of independent directors and non-compliance with the requirements of the legislation and principle of corporate governance.