Effects of Corporate Governance on the Performance of State-Owned Enterprises

Heo, Kyoungsun

World Bank, Washington, DC

关键词: CORPORATE GOVERNANCE;    STATE-OWNED ENTERPRISES;    DISCLOSURE;    SHAREHOLDER RIGHTS;    SERVICE DELIVERY;   

DOI  :  10.1596/1813-9450-8555
RP-ID  :  WPS8555

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

State-owned enterprises play animportant role in economic growth and the delivery ofcritical public services such as health, education, water,and energy. The underperformance of state-owned enterprisescan lead to significant challenges in overall nationalgrowth and competitiveness and pose a fiscal risk to thegovernment. Consequently, improving the performance ofstate-owned enterprises remains an important issue forpolicy makers and development practitioners. More recently,efforts to strengthen corporate governance have been gaininginternational momentum as a means to improve the performanceof state-owned enterprises. This study aims to examine therelationship between corporate governance and theperformance of state-owned enterprises. Using data from 320state-owned enterprises in the Republic of Korea, the studyexamines the effects of corporate governance on variousmeasures of state-owned enterprise performance, includingperformance evaluation results, customer satisfaction, andfinancial performance. The empirical results indicate thatboard size, corporatization, and transparency and disclosureare positively related to the performance of state-ownedenterprises, suggesting that they have an impact on theefficiency of state-owned enterprises. Independence of theboard of directors and separation between the positions ofboard chair and chief executive officer have aninsignificant or negative impact on specific measures ofperformance. These results suggest that a larger board,corporatization of state-owned enterprises, and moretransparent disclosure practices can be beneficial for theperformance of state-owned enterprises.