{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

However there are important exceptions for companies

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: in the OECD as a % of GDP (OECD, 2012). There is extensive state ownership in enterprises (SOEs). The rationale for maintaining SOEs can be grouped in 4 main categories: i) Industrial development and sectorial policies, ii) Control of strategic natural resources, iii) Norwegian ownership, head office location and preservation of strategic national competence and iv) Financial returns. Norway has undertaken important reforms in its ownership policy over the last 15 years, separating the commercial from the regulatory or public functions and improving management and governance. Some companies have been totally or partially privatized. However, as can be seen in the Figure 11, Norway is still one of the OECD countries with the highest involvement of the State in the economy, only below Poland and Turkey. Indeed, the Government has an ownership stake in 77 companies, with 52 managed directly by the Government ministries. The size of SOEs varies from large multinationals (the State has significant ownership stakes in 7 of the 10 largest publicly traded companies headquartered in Norway) to SMEs. The oil & gas cluster in Norway 13 Norway has given the Ministry of Trade and Industry the main responsibility for administering state ownership; this partly replicates the centralized model recommended by the OECD, which is used by Singapore, Denmark and Sweden. However, there are important exceptions for companies such as Statoil (Ministry of Petroleum and Energy) and Kommunalbanken (Ministry of Local Government and Regional Development) (Ministry of Trade and Industry, 2011). Despite the efforts of Parliament and the Government, some inherent risks remain: principal ­agent and free ­riding problems, lower accountability, the moral hazard derived from a softer bu...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern