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METHODS FOR RESOLVING PROBLEMS OF RESPONSIBILITY AND TRANSPARENCY IN THE ACTIVITIES OF SOES IN MARKET ECONOMIES: MODELS AND RESULTS

Ulrich F.W. Ernst

DOI: 10.22495/cocv1i3p4

Abstract

This paper looks at some of the basic challenges and response options in developing good (or at least adequate) corporate governance structures for state-owned enterprises, and then reviews some specific country examples. The discussion concludes with an assessment of lessons for the Ukrainian situation. The government can reduce the range of objectives by focusing on specific priorities; shareholder value needs to be a core objective since it measures whether SOE management is achieving a real contribution to overall prosperity. All serious approaches to improving corporate governance for SOEs stress disclosure and transparency. These efforts go beyond detailed reporting to insist on public disclosure, with the SOEs setting standards for transparency, and ultimately accountability. Publication of financial and operational reports facilitates the task of monitoring and strengthening performance by expanding the group of monitors and analysts to all interested parties.

Keywords: SOE, Transparency, Accountability, Disclosure, Monitoring, Private Shareholders

How to cite this paper: Ernst, U. F. W. (2004). Methods for resolving problems of responsibility and transparency in the activities of SOEs in market economies: Models and results. Corporate Ownership & Control, 1(3), 37-43. http://doi.org/10.22495/cocv1i3p4

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