MAIN FINDINGS. Broadening the ownership of SOEs: A comparative approach

Transcription

1 MAIN FINDINGS Broadening the ownership of SOEs: A comparative approach OECD Russia Corporate Governance Roundtable 8 November 2016 Ritz Carlton Hotel, Moscow Sara Sultan Balbuena OECD Corporate Affairs Division sara.sultan@oecd.org

2 SOE Landscape Across OECD area SOEs represent: 3 % market value of listed companies (US$632 bn) 1 million jobs PSOEs represent: Market Value of $US 795 bn Over 2.5 million jobs Among emerging economies SOEs represent: 13 % global market capitalisation Source: OECD (2014), Secretariat Calculations. Based on figures from end-2012.

3 Landscape - Trends Privatisations and divestments are gaining traction across the OECD area and beyond The large bulk mainly trade sales (74% of transactions) characteristically small IPO and SPO s representing, 14 and 8 % of transactions but characteristically large transactions New data emerging stay tuned! Source: OECD (2016), Secretariat Calculations. Based on data received from 13 economies.

4 Recent work on Listing SOEs Case studies from China, India, New Zealand, Poland, and Turkey, exploring: 1. National circumstances to list 2. Impact of listing on governance (and performance but only marginally) 3. Extent to which governance of SOEs subsequently different from POEs

5 Listing in select economies Economy* # SOEs # PSOE Policy End goal Start date China Mixed ownership- >? India 68 9 Mixed Ownership; eventual privatisation New Zealand 2003-? Phases: 1990s n/a Mixed ownership 2012 Poland 6 10 Privatisation (except strategic companies) 2008 Turkey 6 1 Privatisation *OECD (2014), Secretariat Calculations. Based on figures from end-2012 with the exception of New Zealand.

6 Main Findings - Not just privatisation National circumstances to list China India New Zealand Poland Turkey Performance improvements through market discipline Capital market development /Strengthen local stock market Maximise privatisation revenue/free up capital X X X X X X X X X X X X X X Attract financial resources for SOEs X X X X X Improve efficiency and transparency of SOEs X X X X X Freeing SOEs from public spending limits X X Raise governance standards X X X Encourage citizen investment in stock market X X X Other X X

7 Main Findings: Impact of listing on governance Impact of listing on governance China India New Zealand Poland Turkey Commercial orientation Y Y Y Access to capital and investment renewal Y Y Y Y Y Board independence Y Y Y Non-commercial objectives Y Transparency and disclosure Y Y Y Y Corporate Social Responsibility Y Y Y State influence Y/N Y Y/N

8 Main Findings SOE vs POE governance outcomes Raises governance levels on all accounts, closer or equal to POE Board independence, minority shareholder protection But, also depends on how closely SOE Guidelines are followed Non commercial obligations Undue state interference Board independence (still a problem in some places) Residual control mechanisms Related party transactions Minority shareholder protections

9 OECD Corporate Governance Instruments and broadened ownership Equitable treatment of shareholders Transparency and disclosure Corporate governance codes information to non-state shareholders Access to redress

10 Lessons Learnt

11 Thank you! To access the OECD SOE Guidelines (available in Russian: To access the publication on broadening ownership: ng-the-ownership-of-state-ownedenterprises en.htm