MACMILLAN State on Board!: Navigating Corporate Governance in Emerging Market Business

Research in this book focuses on the strategic behaviour of the State as a shareholder in businesses, and the implications it has for the other shareholder(s) and business performance. It investigates the institutional characteristics of State-linked and State-owned firms (SIEs & SOEs), in emerging markets using Vietnam as a case study with comparative analysis on China and selected ASEAN countries. In doing so, the book adopts an evidence-based approach to explain the State’s role as a shareholder in the different aspects of corporate governance, including CEO appointment, board structure and impact of State ownership on business strategy and performance. It highlights the influence of the State as a shareholder by investigating institutional factors consistent with “path dependence” theory, which postulates that the initial and underlying structure of an economy influences its performance. In addition, the book presents empirical evidence of the dynamics of corporate governance arising from interactions between the State and other shareholders, which has not yet been addressed in the literature, and is distinctive in providing new insights from both qualitative and empirical research on how to successfully navigate the emerging market business environments from the perspective of the State as an “owner-participant”.  Explaining the theoretical constructs in corporate governance in State-invested firms, empirical research methodologies, and results to draw and validate inferences, the book is comprehensive and provides a practical guide for practitioners as well as a reference for academics, undergraduate and postgraduate students. The new theoretical models proposed integrate traditional political-economic and agency theories, which also underpin tertiary business courses and academic research.  Review This book is a comprehensive reference full of important theoretical and empirical information for those who wish to gain an understanding of corporate governance of state-owned enterprises (SOEs), especially those with mixed ownership of state capital and private capital. It provides a new evidence-based framework that integrates agency and political economic theories for corporate governance of mixed ownership SOEs. This book adopts a pragmatic approach in its presentation and offers practical models for corporate practitioners, investors and academics to help them appreciate and navigate the intricacies of corporate governance of state ownership in emerging markets. This is an indispensable guide for those planning to or are engaged in emerging market business.  – Professor Iftekhar Hasan, E. Gerald Corrigan Chair in Finance at the Gabelli School of Business, Fordham University, New York, Scientific Advisor at the Bank of Finland, Managing Editor of the Journal of Financial Stability. “State-owned enterprises (SOEs) in Vietnam remain a major pillar of the Vietnamese economy - the government owns a significant level of assets of listed companies.  This is despite the equitation programmes of the 19990’s and 2000’s.  In recent times there has been a marked reform of SOE governance and performance in Vietnam in its search for economic growth and to achieve its goal of national middle income status by 2030. Such efforts are to be commended and this study supports such steps to reform. It informs the further reforms necessary to move to an even more to a market oriented economy, such as better transparency and disclosure in the governance of SOEs, and improved state ownership activities and state capital management. In SOEs it is important to prevent inefficiencies and misallocation of resources.  The study reviews state-owned enterprises with mixed ownership - partially state-owned combined with private sector investors and uses the benchmarks and compares SOE practices in Vietnamese SOEs with those of Singapore, Malaysia and China.  As a regular provider of corporate governanc