Preface 3

Foreword 4

Abbreviations and acronyms 9

Executive summary 10

1 The global SOE landscape 13

  1.1. The global landscape of state-owned enterprises 15

  1.2. Trends in non-financial state-owned enterprises 16

  1.3. Performance, financing structure and investment of non-financial SOEs 20

  1.4. Comparing SOEs against privately held companies 24

  References 32

  Notes 33

2 SOE ownership arrangements 35

  2.1. Legal and regulatory environment 36

  2.2. State ownership rationales and policies 38

  2.3. Ownership in practice 43

  2.4. Aggregate reporting 50

  References 52

  Notes 54

3 SOEs in the marketplace 55

  3.1. Regulatory treatment of SOEs and tax exemptions 56

  3.2. State support and SOE financing 63

  3.3. Public policy objectives and public service obligations 65

  3.4. Dividend policies 70

  References 73

4 Disclosure, transparency and accountability of SOEs 75

  4.1. Reporting and disclosure requirements 76

  4.2. Control structures, board composition and remuneration disclosure 80

  4.3. Disclosure of material risk factors and risk management 85

  4.4. Equitable treatment of shareholders 86

  4.5. Audit practices 89

  References 94

5 Composition and responsibilities of SOE boards 95

  5.1. Board structures, functions and authority 96

  5.2. Board committees 99

  5.3. Board composition 106

  5.4. Board independence 110

  5.5. Board effectiveness 118

  5.6. Risk management and internal controls 120

  References 123

  Notes 124

6 SOEs and sustainability 125

  6.1. Sustainability and state-owner expectations 126

  6.2. Integrating sustainability considerations within risk management systems 128

  6.3. Sustainability reporting and disclosure 131

  6.4. Stakeholder relations 133

  References 133

  Notes 135

7 Anti-corruption and integrity 137

  7.1. OECD Guidelines on Anti-Corruption and Integrity in SOEs 138

  7.2. Integrity of the state 140

  7.3. Exercise of ownership for integrity 141

  7.4. Promotion of anti-corruption and integrity in SOEs 142

  7.5. SOE accountability 143

  References 144

Annex A. Methodological note 145

  References 149