How does the implementation of effective corporate governance practices affect the performance of state-owned enterprises?
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The implementation of effective corporate governance practices significantly impacts the performance of state-owned enterprises (SOEs). Research shows that corporate governance, including factors like board size, composition, and the presence of female directors, plays a crucial role in determining the financial performance of SOEs . Additionally, good corporate governance practices, such as having an Independent Board of Commissaries and an effective Audit Committee, have been found to positively influence the value of SOEs . Despite challenges, such as the difficulty in cultivating a good corporate governance culture in SOEs, strategies like restructuring into holding companies based on clusters can enhance their performance . The success of SOEs also heavily relies on governmental reactions, structural reforms, and the consideration of privatization options .
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| Papers (5) | Insight |
|---|---|
| Effective corporate governance practices enhance state-owned enterprises' performance by ensuring proper decision-making, reducing conflicts of interest, and improving accountability, ultimately leading to better operational efficiency and sustainable growth. | |
| Effective corporate governance practices positively impact the financial performance of state-owned enterprises, as shown by differences in board size, director composition, and financial metrics between state-owned and private firms. | |
| Effective corporate governance positively influences state-owned enterprises' performance by mediating through the value chain, enhancing overall operational efficiency and financial outcomes. | |
30 Sep 2022 | Effective corporate governance practices, such as the Independent Board of Commissaries and Audit Committee, positively impact the value of state-owned enterprises, enhancing their performance. |
| Effective corporate governance practices, combined with political will, can enhance state-owned enterprises' management in Africa. Government support, structural reforms, and privatization when needed are crucial for success. |
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