State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition

The legal structure of the modern corporate form has four fundamental elements--separate identity, limited liability for shareholders, centralized management, and transferability of shares. These, together with the dynamics of governance relationsh...

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Main Authors:	Muir, Russell, Soba, Joseph
Format:	Viewpoint
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING ACCOUNTING STANDARDS AUDITING BANKING SYSTEM BANKRUPTCY BUREAUCRACY CIVIL SERVICE COAL COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATE PERFORMANCE CORPORATE STRUCTURE CORPORATION CORPORATIONS DEBT ECONOMIES OF SCALE EMPLOYMENT ENTERPRISE RESTRUCTURING FINANCIAL DISCIPLINE FINANCIAL PERFORMANCE FIRMS GOVERNMENT AGENCY GOVERNMENT OFFICIALS GOVERNMENT OWNERSHIP HARD BUDGET CONSTRAINTS INCOME INSTITUTIONAL INVESTORS INTERNATIONAL MARKETS LABOR MARKET LEGAL FORM LEGAL STRUCTURE LEGISLATION MANAGERIAL AUTONOMY MARKET DISCIPLINE MORAL HAZARD MULTINATIONAL COMPANIES OIL OPERATING COMPANIES POLITICIANS PRESIDENCY PRIVATE SECTOR PRODUCERS PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS REPRESENTATIVES SECURITIES SHAREHOLDERS STATE AGENCIES STATE OWNERSHIP STATE SUBSIDIES STATE-OWNED ENTERPRISES TRANSPARENCY PUBLIC ENTERPRISES LEGAL FORMS EFFICIENCY INCENTIVES DEBTS EQUITY MARKET COMPETITION
Online Access:	http://documents.worldbank.org/curated/en/1995/10/697015/state-owned-enterprise-restructuring-better-performance-through-corporate-structure-competition http://hdl.handle.net/10986/11649

id	okr-10986-11649
recordtype	oai_dc
spelling	okr-10986-116492021-04-23T14:02:56Z State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition Muir, Russell Soba, Joseph ACCOUNTING ACCOUNTING STANDARDS AUDITING BANKING SYSTEM BANKRUPTCY BUREAUCRACY CIVIL SERVICE COAL COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATE PERFORMANCE CORPORATE STRUCTURE CORPORATION CORPORATIONS DEBT ECONOMIES OF SCALE EMPLOYMENT ENTERPRISE RESTRUCTURING FINANCIAL DISCIPLINE FINANCIAL PERFORMANCE FIRMS GOVERNMENT AGENCY GOVERNMENT OFFICIALS GOVERNMENT OWNERSHIP HARD BUDGET CONSTRAINTS INCOME INSTITUTIONAL INVESTORS INTERNATIONAL MARKETS LABOR MARKET LEGAL FORM LEGAL STRUCTURE LEGISLATION MANAGERIAL AUTONOMY MARKET DISCIPLINE MORAL HAZARD MULTINATIONAL COMPANIES OIL OPERATING COMPANIES POLITICIANS PRESIDENCY PRIVATE SECTOR PRODUCERS PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS REPRESENTATIVES SECURITIES SHAREHOLDERS STATE AGENCIES STATE OWNERSHIP STATE SUBSIDIES STATE-OWNED ENTERPRISES TRANSPARENCY PUBLIC ENTERPRISES LEGAL FORMS EFFICIENCY INCENTIVES EFFICIENCY DEBTS EQUITY MARKET COMPETITION CORPORATE STRUCTURE STATE-OWNED ENTERPRISES The legal structure of the modern corporate form has four fundamental elements--separate identity, limited liability for shareholders, centralized management, and transferability of shares. These, together with the dynamics of governance relationship between the owners, the supervisory board, and the executives of the firm, provide internal incentives for efficiency. However, the legal form alone is not sufficient to ensure efficiency. Certain external incentives must be in place for sustainable efficiency gains. Corporate performance is influenced by external pressures from competition in product, factor, debt, and equity markets and by regulation. The interplay of the internal and external incentives causes the managers to act in accordance with the goals of efficiency and profitability set by the owners. Also, it causes the modern corporation to act with a clarity and singleness of purpose. The absence of any of the internal or external incentives can seriously undermine performance. 2012-08-13T15:37:52Z 2012-08-13T15:37:52Z 1995-10 http://documents.worldbank.org/curated/en/1995/10/697015/state-owned-enterprise-restructuring-better-performance-through-corporate-structure-competition http://hdl.handle.net/10986/11649 English Viewpoint: Public Policy for the Private Sector; Note No. 57 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTING ACCOUNTING STANDARDS AUDITING BANKING SYSTEM BANKRUPTCY BUREAUCRACY CIVIL SERVICE COAL COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATE PERFORMANCE CORPORATE STRUCTURE CORPORATION CORPORATIONS DEBT ECONOMIES OF SCALE EMPLOYMENT ENTERPRISE RESTRUCTURING FINANCIAL DISCIPLINE FINANCIAL PERFORMANCE FIRMS GOVERNMENT AGENCY GOVERNMENT OFFICIALS GOVERNMENT OWNERSHIP HARD BUDGET CONSTRAINTS INCOME INSTITUTIONAL INVESTORS INTERNATIONAL MARKETS LABOR MARKET LEGAL FORM LEGAL STRUCTURE LEGISLATION MANAGERIAL AUTONOMY MARKET DISCIPLINE MORAL HAZARD MULTINATIONAL COMPANIES OIL OPERATING COMPANIES POLITICIANS PRESIDENCY PRIVATE SECTOR PRODUCERS PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS REPRESENTATIVES SECURITIES SHAREHOLDERS STATE AGENCIES STATE OWNERSHIP STATE SUBSIDIES STATE-OWNED ENTERPRISES TRANSPARENCY PUBLIC ENTERPRISES LEGAL FORMS EFFICIENCY INCENTIVES EFFICIENCY DEBTS EQUITY MARKET COMPETITION CORPORATE STRUCTURE STATE-OWNED ENTERPRISES
spellingShingle	ACCOUNTING ACCOUNTING STANDARDS AUDITING BANKING SYSTEM BANKRUPTCY BUREAUCRACY CIVIL SERVICE COAL COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATE PERFORMANCE CORPORATE STRUCTURE CORPORATION CORPORATIONS DEBT ECONOMIES OF SCALE EMPLOYMENT ENTERPRISE RESTRUCTURING FINANCIAL DISCIPLINE FINANCIAL PERFORMANCE FIRMS GOVERNMENT AGENCY GOVERNMENT OFFICIALS GOVERNMENT OWNERSHIP HARD BUDGET CONSTRAINTS INCOME INSTITUTIONAL INVESTORS INTERNATIONAL MARKETS LABOR MARKET LEGAL FORM LEGAL STRUCTURE LEGISLATION MANAGERIAL AUTONOMY MARKET DISCIPLINE MORAL HAZARD MULTINATIONAL COMPANIES OIL OPERATING COMPANIES POLITICIANS PRESIDENCY PRIVATE SECTOR PRODUCERS PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS REPRESENTATIVES SECURITIES SHAREHOLDERS STATE AGENCIES STATE OWNERSHIP STATE SUBSIDIES STATE-OWNED ENTERPRISES TRANSPARENCY PUBLIC ENTERPRISES LEGAL FORMS EFFICIENCY INCENTIVES EFFICIENCY DEBTS EQUITY MARKET COMPETITION CORPORATE STRUCTURE STATE-OWNED ENTERPRISES Muir, Russell Soba, Joseph State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition
relation	Viewpoint: Public Policy for the Private Sector; Note No. 57
description	The legal structure of the modern corporate form has four fundamental elements--separate identity, limited liability for shareholders, centralized management, and transferability of shares. These, together with the dynamics of governance relationship between the owners, the supervisory board, and the executives of the firm, provide internal incentives for efficiency. However, the legal form alone is not sufficient to ensure efficiency. Certain external incentives must be in place for sustainable efficiency gains. Corporate performance is influenced by external pressures from competition in product, factor, debt, and equity markets and by regulation. The interplay of the internal and external incentives causes the managers to act in accordance with the goals of efficiency and profitability set by the owners. Also, it causes the modern corporation to act with a clarity and singleness of purpose. The absence of any of the internal or external incentives can seriously undermine performance.
format	Publications & Research :: Viewpoint
author	Muir, Russell Soba, Joseph
author_facet	Muir, Russell Soba, Joseph
author_sort	Muir, Russell
title	State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition
title_short	State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition
title_full	State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition
title_fullStr	State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition
title_full_unstemmed	State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition
title_sort	state-owned enterprise restructuring : better performance through the corporate structure and competition
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/1995/10/697015/state-owned-enterprise-restructuring-better-performance-through-corporate-structure-competition http://hdl.handle.net/10986/11649
_version_	1764417501978951680

State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition

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