Using a hand-collected sample of state-owned enterprises and newly privatized firms around the globe, we examine financial reporting quality in natural advantage (substantial oil reserves or mineral deposits) industries. We find that ultimate state ownership tends to deteriorate financial...

We investigate the role of natural advantage (substantial oil reserves or mineral deposits) in the shaping of privatization policies. We find that governments tend to retain high ownership in natural advantage based firms. In addition, our results suggest the existence of too-big-to-relinquish...