Publication: Governance in State-Owned Enterprises Revisited : The Cases of Water and Electricity in Latin America and the Caribbean
López Azumendi, Sebastián
This paper studies the governance structure of state-owned enterprises in the water and electricity sectors of Latin America and the Caribbean. Through a unique dataset, the paper compares 44 leading state companies of the region based on an aggregate measure of corporate governance and six salient aspects of their design: board, chief executive officer, performance orientation, management, legal framework, and transparency/disclosure. The results indicate the need for improvement in areas such as the selection and appointment of directors to the board and the performance-orientation of the enterprises. The paper also highlights the importance of discussing the management of state-owned enterprises in the wider context of public sector governance, with particular focus on accountability. Moreover, it recognizes the role of accountability as central in the management of state-owned enterprises, recommending a better understanding of regulation and performance management. The paper finds a positive correlation between corporate governance and the utilities' performance. Among the different aspects of corporate governance, performance orientation and professional management seem to be the highest contributors to well-performing state-owned enterprises. State-owned enterprises in the electricity sector show higher governance levels than those in the water sector.
“Andrés, Luis Alberto; Guasch, José Luis; López Azumendi, Sebastián. 2011. Governance in State-Owned Enterprises Revisited : The Cases of Water and Electricity in Latin America and the Caribbean. Policy Research Working Paper ; No. 5747. © http://openknowledge.worldbank.org/handle/10986/3508 License: CC BY 3.0 IGO.”
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