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Exercising ownership rights in state owned enterprise groups : what China can learn from international experience (Inglês)

This paper addresses the question of how the Chinese state could exercise its ownership rights in large state owned enterprises in a more effective way, by drawing lessons from relevant international experiences. Since large state-owned enterprise groups share the same institutional framework of state assets management system with other SOEs, the policy recommendations of this paper may have broader applicability. The paper is organized as follows. In section I, the institutional challenges of exercising state ownership rights in China's SOEs, and past efforts of reform are highlighted. Section II presents relevant international experiences, and, key policy recommendations appear in section III. Exerting effective governance over China's many large SOEs will itself be a huge challenge. Continued diversification of share ownership is highly desirable, thus the Government should be ready to reduce the State share in many large SOEs to 51% or less. Even with only a minority shareholding, methods for protecting vital strategic interests can be found or developed. Moreover, worldwide experience shows that reasonably independent boards lead to stronger SOEs, suggesting the composition of boards for China's large SOEs should strike a balance between independent perspectives, and liaison with the State shareholder.

Detalhes

  • Autor

    Mako, William; Chunlin Zhang;

  • Data do documento

    2002/12/31

  • TIpo de documento

    Documento de Trabalho

  • No. do relatório

    26878

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    China,

  • Região

    Leste Asiático e Pacífico,

  • Data de divulgação

    2010/07/01

  • Nome do documento

    Exercising ownership rights in state owned enterprise groups : what China can learn from international experience

  • Palavras-chave

    annual statement;state asset management system;state shareholder;state asset management reform;state owned enterprise;ownership right;large enterprise;returns on equity;division of labor;joint stock company;senior investment managers;soft budget constraint;modern market economy;asset management companies;asset management company;public limited company;return on asset;state holding company;earnings per share;fiduciary duty;senior civil servants;contract responsibility system;Cash flow forecast;transfer of cash;minister of industry;return of capital;cost of labor;trade union representative;world war ii;initial public offering;net operating profit;state owned bank;state owned company;separation of ownership;modern enterprise system;intellectual property rights;owner of state;state-owned banks;limited liability company;performance evaluation system;form of tax;wages and salary;central party committee;social development program;global best practice;cost of debt;civil law system;common law system;efficient capital structure;private limited company;degree of independence;state enterprise sector;sum of money;discounted cash flow;return on capital;enterprise group;market capitalization;parent company;supervisory board;state ownership;legal person;national economy;Company Law;personnel department;shareholder right;state capital;institutional framework;insider control;political interference;financial holding;state sector;total employment;board meeting;qualitative indicator;financial return;urban employment;commercial practice;government representative;Dividend policies;core competencies;financial statement;private investment;reform strategy;minority share;social responsibility;financial accounting;civil code;monthly salary;regulatory obligation;public nature;profit maximization;management compensation;government representation;effective governance;enterprise management;business entity;national strategic;political intervention;institutional innovation;political consideration;investment institution;commercial entity;management function;share company;institutional investor;industry sector;state council;state agency;ownership diversification;trend analysis;preferential treatment;world market;commercial asset;ownership interest;short maturity;financial health;corporate plan;transaction cost;incentive fee;government objective;management account;workforce reduction;cash expenditure;audit procedure;budget plan;management performance;annual budget;consumer protection;financial autonomy;aircraft design;securities commission;corporate structure;industrial company;management board;compensation policy;managerial decision;plant closure;insurance companies;investor outreach;financial transparency;diversified ownership;commercial code;public company;military aircraft;quantitative measure;general management;Administrative law;business condition;efficient operation;export finance;private company;incentive scheme;passenger aircraft;capital infusion;export performance;business administration;employee performance;incentive compensation;finance highway;large shareholder;Corporate Law;golden share;hostile takeover;minority block;Oil Refining;long-term contract;distressed company;lagging region;fundamental changes;telephone network;financial risk;engineering company;oil shock;restructuring strategy;political parties;political party;capital time;continuous market;enterprise governance;operational risk;proxy voting;voting right;individual shareholders;state bank;equity capital;academic research;stock price;capital employed;capital budget;present value;Capital Investments;corporate performance;public shareholder;competitive market;stateowned enterprises;enterprise account;business strategy;financial result;market supervision;minority shareholdings;treasury function;economic crisis;majority holding;corporate governance;government regulation;subsidiary company;majority ownership;minority ownership;sales revenue;industrial sector;international competition;brand name

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