Insider Privatisation and Restructuring Incentives
AbstractIn the literature on privatisation and restructuring it is a generally held belief that manager owned firms will be restructured more rigorously than worker owned companies. This gives the clear recommendation that property rights and control rights should be allocated to managers in the process of (insider-) privatisation. One of the implied arguments is, that managers' career concerns will make them eager to prove their ability by improving company efficiency. The present model shows that in the transition context managers' career concerns might result in the opposite effect. If the bulk of job opportunities are in worker controlled firms, the managers of the few manager controlled firms will want to appear soft on excess labour capacity – hence, restructure less harshly – in order to improve their career opportunities. Copyright Kluwer Academic Publishers 2003
Download InfoIf 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.
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 InfoArticle provided by Springer in its journal Economics of Planning.
Volume (Year): 36 (2003)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=113294
career concerns; insider shares; manager incentives; privatisation; restructuring incentives; transition;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Estrin, Saul & Rosevear, Adam, 1999. "Enterprise performance and ownership: The case of Ukraine," European Economic Review, Elsevier, vol. 43(4-6), pages 1125-1136, April.
- Wright, Peter & Mukherji, Ananda, 1999. "Inside the firm: Socioeconomic versus agency perspectives on firm competitiveness," The Journal of Socio-Economics, Elsevier, vol. 28(3), pages 295-307.
- J Earle & S Estrin & L Leshchenko, 1996. "Ownership Structures," CEP Discussion Papers dp0315, Centre for Economic Performance, LSE.
- Cauley, Jon & Cornes, Richard & Sandler, Todd, 1999.
"Stakeholder Incentives and Reforms in China's State-Owned Enterprises: A Common-Property Theory,"
Staff General Research Papers
1670, Iowa State University, Department of Economics.
- Cauley, Jon & Cornes, Richard & Sandler, Todd, 1999. "Stakeholder incentives and reforms in China's state-owned enterprises: A common-property theory," China Economic Review, Elsevier, vol. 10(2), pages 191-206.
- Richard Cornes & Todd Sandler & Jon Cauley, 1998. "Stakeholder Incentives and Reforms in China’s State-Owned Enterprises: A Common-Property Theory," Keele Department of Economics Discussion Papers (1995-2001) 98/11, Department of Economics, Keele University.
- Filatotchev, Igor & Bleaney, Michael & Wright, Mike, 1999.
" Insider-Controlled Firms in Russia,"
Economic Change and Restructuring,
Springer, vol. 32(2), pages 129-51.
- Claessens, Stijn & Djankov, Simeon, 1999. "Enterprise performance and management turnover in the Czech Republic," European Economic Review, Elsevier, vol. 43(4-6), pages 1115-1124, April.
- M Belka & S Estrin & M Schaffer & I.J. Singh, 1995. "Enterprise Adjustment in Poland: Evidence from a Survey of 200 Private," CEP Discussion Papers dp0233, Centre for Economic Performance, LSE.
- Simeon Djankov & Peter Murrell, 2002.
"Enterprise Restructuring in Transition: A Quantitative Survey,"
Journal of Economic Literature,
American Economic Association, vol. 40(3), pages 739-792, September.
- Djankov, Simeon & Murrell, Peter, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," CEPR Discussion Papers 3319, C.E.P.R. Discussion Papers.
- Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-91, September.
- Schroder, Philipp J. H., 2001. "On the speed and boundaries of structural adjustment when fiscal policy is tight," Economic Systems, Elsevier, vol. 25(4), pages 345-364, December.
- Freinkman, Lev M. & Starodubrovskaya, Irina, 1996.
"Restructuring of enterprise social assets in Russia : trends, problems, possible solutions,"
Policy Research Working Paper Series
1635, The World Bank.
- L.M. Freinkman & I. Starodubrovskaya, 1996. "Restructuring of Enterprise Social Assets in Russia: Trends, Problems, Possible Solutions," Working Papers wp96052, International Institute for Applied Systems Analysis.
- Roland, Gérard & Sekkat, M. Khalid, 1996.
"Managerial Career Concerns, Privatization and Restructuring in Transition Economies,"
CEPR Discussion Papers
1363, C.E.P.R. Discussion Papers.
- Roland, Gerard & Sekkat, Khalid, 2000. "Managerial career concerns, privatization and restructuring in transition economies," European Economic Review, Elsevier, vol. 44(10), pages 1857-1872, December.
- Gérard Roland & Khalid Sekkat, 2000. "Managerial career concerns, privatization and restructuring in transition economies," ULB Institutional Repository 2013/7340, ULB -- Universite Libre de Bruxelles.
- Shleifer, Andrei & Vishny, Robert W, 1994. "Politicians and Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 995-1025, November.
- Hart, Oliver, 1995. "Corporate Governance: Some Theory and Implications," Economic Journal, Royal Economic Society, vol. 105(430), pages 678-89, May.
- Aghion, Philippe & Blanchard, Olivier & Burgess, Robin, 1994. "The behaviour of state firms in eastern Europe, pre-privatisation," European Economic Review, Elsevier, vol. 38(6), pages 1327-1349, June.
- Thompson, Steve & Wright, Mike, 1995. "Corporate Governance: The Role of Restructuring Transactions," Economic Journal, Royal Economic Society, vol. 105(430), pages 690-703, May.
- Wendy Carlin & Philippe Aghion, 1996. "Restructuring outcomes and the evolution of ownership patterns in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 371-388, October.
- Josef C. Brada, 1996. "Privatization Is Transition--Or Is It?," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 67-86, Spring.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.