The Effectiveness of Boards of Directors of State Owned Enterprises in Developing Countries

Vagliasindi, Maria

World Bank, Washington, DC

关键词: ACCOUNTABILITY;    ADMINISTRATIVE CAPACITY;    ALLEGIANCE;    ARTICLE OF ASSOCIATION;    ARTICLES OF INCORPORATION;   

DOI  :  10.1596/1813-9450-4579
RP-ID  :  WPS4579

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper aims to shed some new lighton the conditions needed to ensure the effectiveness ofBoards of Directors of state owned enterprises with a focuson infrastructure sectors. In the case of developingcountries, empirical studies have found evidence of positivelinks between the composition of the Board of Directors andfinancial performance. Yet the lack of solid theoreticalfoundations, and in some cases poor data availability, makesthe conclusions of most studies weak. Several policyrecommendations emerge from the review of the economicliterature and evidence from case studies. First, theintroduction of a sufficient number of independent directorsemerges as an important corporate governance milestone.Empowering them to exercise effective monitoring ofmanagement, however, may prove to be a formidable challengefor of state owned enterprises. More attention to boardprocedures, particularly related to the Board selection andevaluation process, is essential, to produce the necessaryinsulation of Boards from government interference. Ensuringsufficient continuity of services to directors isparticularly crucial to improve corporate governance.Inaddition, other factors that may reduce directors'ability to monitor corporate activities, such as the ageprofile and the number of Boards on which they sit, need tobe handled more carefully.