some state owned enterprises outperform those in the private sector. Jinghan ( 2004), 82-93 ;( 2005)75-93.insists that SOE yield. This is the agency problem. I n which case, SOEs are characterised by poor corporate governance, poor manageme nt and lack of competent managers, Watanabe (2002)373, also feared that the prob lem of SOEs is structurally pyramidal that results in exploitation. Because of t his, the problems of corporate governance and control have led to global reviews of codes of corporate governance .This is evidenced by EBRD (1997) which emph asises the following good corporate practices guidelines: “the development of transparent shareholder structures; the provision to share hol ders of proper internally and externally audited accounts, and of a comprehensiv e annual reports; sufficient presence on the board of directors that is independ ent of management; and full disclosure by directors of conflicts of interest; an d that governments are promising reforms along these lines”