ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 730
The privatisation process that began in Finland in the 1980s has continued during the past decade. Finnish state-owned companies are going through a strong reforming process. This survey looks at the changes in their objective setting. It also compares the changes to those that are privately owned. It sheds light on their success in achieving the mentioned objectives and compares the success of the state-owned companies to those owned by private instances. The paper presents possible factors and driving forces contributing to the changes and to the differences between the groups. Moreover, it reviews the discussion about privatisation implied by economic theory. Finally it speculates about the future of the institutions of the state and the institution of the company. We conclude that there is evidence of changes in the objectives of state-owned companies and, moreover, of the differencies in the objectives among state-owned and privately owned companies and in their success in achieving their objectives. However, further research will be needed to examine in detail the interdependencies between the variables and to give explicit valuations of the significance.