Spartak Keremidchiev & Miroslav Nedelchev



The purpose of this article is to present good practices, experience and ideas related to the organization and functioning of the board of state-owned enterprises. Corporate governance practices are represented by three characteristics of the board: nomination, composition and remuneration.

The results of the article reveal a wide variety of board practices in different countries. They are determined by the state ownership policy of the respective country. Various practices and experiences are presented, which can be included in a kind of menu for selecting appropriate tools to promote and strengthen the boards, and thus the corporate governance of state-owned enterprises in Bulgaria.



nomination, composition, remuneration


JEL Codes: D23, D86, G34, M12, P51



Alchian, A. (1965). Some Economics of Property Rights. Il Politico, 30, 816–829.

Chambers, N. & Cornforth, C. (2010). The role of corporate governance and boards in organisational performance. In Walshe, K., Harvey, G. & Jas, P. (eds.) Connecting Knowledge and Performance in Public Services: From Knowing to Doing. Cambridge: Cambridge University Press.

Chang, H. (2007). State-Owned Enterprise Reform. New York: United Nations.

Chen, C. (2016). Solving the puzzle of corporate governance of state-owned enterprises: The path of Temasek model in Singapore and lessons for China. Northwestern Journal of International Law and Business, 36(2), 303–370.

Domberger, S. & Piggott, J. (1994). Privatization Policies and Public Enterprise: a Survey. In Bishop, M., Kay, J. & Mayer, C. Privatisation and Economic Performance. Oxford: Oxford University Press.

Erić, D. & Stošić, I. (2011). Upgrading corporate governance practice of state owned enterprises in processes of EU integration – comparation of Serbia and Slovenia. In Contemporary issues in the integration processes of Western Balkan countries in the European Union. International Center for Promotion of Enterprise, Ljubljana, 234–236.

European Commission. (2016). State-Owned Enterprises in the EU: Lessons Learnt and Ways Forward in a Post-Crisis Context. Institutional paper 031. Brussels.

Ferrari, A., Mare, D. & Skamnelos, I. (2017). State Ownership of Financial Institutions in Europe and Central Asia. Policy Research Working Paper 8288. Washington, DC: World Bank.

Florio, M. (2004). The Great Divestiture: Evaluating the Welfare Impact of the British Privatizations 1979-1997. MIT Press.

Grosman, A., Okhmatovskiy, I. & Wright, M. (2016). State Control and Corporate Governance in Transition Economies: 25 Years on from 1989. Corporate Governance: An International Review, 24(3), 200–221.

Kim, J. & Chung, H. (2008). Empirical Study on the Performance of State-owned-enterprises and the Privatizing Pressure: The Case of Korea. Seoul National University.

Krause, T. (2013). Corporate Governance of Corporate Government: A Literature Review on the Relationship between Internal Corporate Governance Practices and Performance in State Owned Enterprises. Tabled Paper prepared for the Annual Conference of the European Group for Public Administration (EGPA), 2013, Edinburgh, Scotland in the Study Group V “Regional and Local Government”.

Menozzi, A. & Urtiaga, M. (2008). Board composition and performance in State-Owned Enterprises: evidence from the Italian public utilities sector. European Financial Management Association 2008 Annual Meeting.

Mirić, A., Todorović, M. & Janićijević, N. (2018). How can the efficiency of corporate governance in Serbian state-owned enterprises be increased? Ekonomski anali, 63(216), 63–84.

OECD. (2011). State-Owned Enterprise Governance Reform. An Inventory of Recent Change. Paris: OECD Publishing.

OECD. (2013). Boards of Directors of State-Owned Enterprises: An Overview of National Practices. Paris: OECD Publishing.

OECD. (2015a). OECD Review of the Corporate Governance of State-Owned Enterprises. Latvia. Paris: OECD Publishing.

OECD. (2015b). OECD Review of the Corporate Governance of State-Owned Enterprises. Colombia. Paris: OECD Publishing.

OECD. (2015c). OECD Review of the Corporate Governance of State-Owned Enterprises. Lithuania. Paris: OECD Publishing.

OECD. (2018). OECD Review of the Corporate Governance of State-Owned Enterprises. Argentina. Paris: OECD Publishing.

Pargendler, M. (2012). State Ownership and Corporate Governance. Fordham Law Review, 80(6), 2917–2973.

Robinett, D. (2006). Held by the Visible Hand. The Challenge of SOE Corporate Governance for Emerging Markets. Washington, DC.: World Bank.

Sokol, D. (2009). Competition Policy and Comparative Corporate Governance of State-Owned Enterprises. Brigham Young University Law Review, Vol. 2009, No. 1713–1812. Gainesville: University of Florida Levin College of Law.

Vickers, J. & Yarrow, G. (1988). Privatization: an economic analysis. MIT Press.

World Bank. (2014a). Corporate Governance of State-Owned Enterprises in Latin America: Current Trends and Country Cases. Report No.: 89468-LAC. Washington, DC.

World Bank. (2014b). Corporate governance of state-owned enterprises: A Toolkit. Washington, DC.


Full Text: PDF (English)

Suggested Citation:

To cite this article: KEREMIDCHIEV S., M. NEDELCHEV, (2020). Corporate governance of state-owned enterprises: national practices of the board. Entrepreneurship, 8 (2), 16-26, DOI:10.37708/ep.swu.v8i2.2