Governance Challenges of Listed State-Owned Enterprises Around the World: National Experiences and a Framework for Reform

66 Pages Posted: 29 Mar 2017 Last revised: 16 May 2017

Curtis J. Milhaupt

Columbia Law School

Mariana Pargendler

Fundação Getulio Vargas Law School at São Paulo; New York University School of Law

Date Written: April 1, 2017

Abstract

Despite predictions of their demise in the aftermath of the collapse of socialist economies in Eastern Europe, state-owned enterprises (SOEs) are very much alive in the global economy. The relevance of listed SOEs — firms still subject to government ownership, a portion of whose shares are traded on public stock markets — has persisted and even increased around the world, as policymakers have encouraged the partial floating of SOE shares either as a first step toward, or as an alternative to, privatization. In this article, we evaluate the governance challenges associated with mixed ownership of enterprise, and examine a variety of national approaches to the governance of listed SOEs, with a view to framing a robust policy discussion in the many countries where SOE reform is a topic of major significance. We describe the evolution and current status of the institutional framework applicable to listed SOEs in eight different jurisdictions, reflecting a variety of economic, legal, and political environments: France, the United States, Norway, Colombia, Brazil, Japan, Singapore, and China. We leverage the lessons from this comparative analysis to critique the policy prescriptions of international agencies such as the OECD, and to frame policy suggestions of our own.

Keywords: state-owned enterprises (SOEs), corporate governance, mixed ownership

JEL Classification: G38, K22, L33, P50

Suggested Citation

Milhaupt, Curtis J. and Pargendler, Mariana, Governance Challenges of Listed State-Owned Enterprises Around the World: National Experiences and a Framework for Reform (April 1, 2017). Cornell International Law Journal, Vol. 50, No. 3 (2017 Forthcoming); European Corporate Governance Institute (ECGI) - Law Working Paper No. 352/2017; FGV Direito SP Research Paper Series; NYU Law and Economics Research Paper No. 17-12; Columbia Law and Economics Working Paper No. 566. Available at SSRN: https://ssrn.com/abstract=2942193

Curtis J. Milhaupt

Columbia Law School ( email )

435 West 116th Street
New York, NY 10025
United States
(212) 854-4926 (Phone)
(212) 854-7496 (Fax)

Mariana Pargendler (Contact Author)

Fundação Getulio Vargas Law School at São Paulo ( email )

R. Rocha, 233, Bela Vista
São Paulo, 01330-000
Brazil

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States

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