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 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.
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Bibliographic Details
| Main Authors: |
Muir, Russell,
Soba, Joseph |
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| Format: | Viewpoint
biblioteca
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| Language: | English |
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| Published: |
World Bank, Washington, DC
1995-10
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| 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, |
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| 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
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