Advanced Search
MyIDEAS: Login to save this article or follow this journal

Changes in Ownership Concentration in Mass Privatised Firms: evidence from Poland and the Czech Republic

Contents:

Author Info

  • Irena Grosfeld

    (The University of Warsaw)

  • Iraj Hashi

Abstract

We analyse the changes in ownership concentration in firms included in two mass privatisation programmes in Poland and the Czech Republic. We find that despite important differences in the design of the two privatisation schemes and despite different quality of regulatory environments, the ownership structure emerging 4-5 years after the initial distribution of assets is remarkably similar in the two countries. Ownership concentration defined as the share of the largest equity holder has significantly increased. Exploring the determinants of ownership concentration, we check whether such revealed preference for higher participation in firm equity does not hide different motivations and behaviour of investors. Our results reveal interesting differences between the two countries: in the Czech Republic the increase in ownership concentration was less likely in poorly performing firms, while in Poland the quality of past performance did not affect investors' willingness to increase their holdings. This contrasting result may reflect the difference in the quality of laws and regulations in Poland and in the Czech Republic. In the Czech Republic, where tunnelling was a common practice in the period covered by our study, shareholders increasing their stakes in a company could have been motivated by the objective of extracting value rather than by the willingness to impose a specific direction on the way the firm is managed. This might explain why they prefer to increase their control in those companies which perform well rather than those that perform poorly. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8683.2007.00585.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Corporate Governance: An International Review.

Volume (Year): 15 (2007)
Issue (Month): 4 (07)
Pages: 520-534

as in new window
Handle: RePEc:bla:corgov:v:15:y:2007:i:4:p:520-534

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0964-8410&site=1

Order Information:
Web: http://www.blackwellpublishing.com/journal.asp?ref=0964-8410&site=1

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Sprenger, Carsten, 2011. "The choice of ownership structure: Evidence from Russian mass privatization," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 260-277, June.
  2. Cabeza-García, Laura & Gómez-Ansón, Silvia, 2011. "Post-privatisation ownership concentration: Determinants and influence on firm efficiency," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 412-430, September.
  3. Dolgopyatova, T., 2010. "Concentration of Ownership in Russian Industry: Firm-Level Evolution," Journal of the New Economic Association, New Economic Association, issue 8, pages 80-99.
  4. Buchen, Clemens, 2010. "Emerging economic systems in Central and Eastern Europe – a qualitative and quantitative assessment," EconStor Theses, ZBW - German National Library of Economics, number 37141.
  5. Bersant Hobdari & Aleksandra Gregoric & Evis Sinani, 2011. "The role of firm ownership on internationalization: evidence from two transition economies," Journal of Management and Governance, Springer, vol. 15(3), pages 393-413, August.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:corgov:v:15:y:2007:i:4:p:520-534. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.