Advanced Search
MyIDEAS: Login to save this paper or follow this series

Post-Privatization Corporate Governance And Firm Performance: The Role Of Private Ownership Concentration, Identity And Board Composition

Contents:

Author Info

  • Mohammed Omran

    ()
    (Egyptian Exchange)

Registered author(s):

    Abstract

    We examine and analyze the post-privatization corporate governance of a sample of 52 newly privatized Egyptian firms over a period of 10 years, from 1995 to 2005. We look at the ownership structure that results from privatization and its evolution; the determinants of private ownership concentration; and the impact of private ownership concentration, identity and board composition on firm performance. We find that the state gives up control over time to the private sector, but still controls, on average, more than 35 percent of these firms. We also document a trend in private ownership concentration over time, mostly to the benefit of foreign investors. Firm size, sales growth, industry affiliation, and timing and method of privatization seem to play a key role in determining private ownership concentration. Ownership concentration and ownership identity, in particular foreign investors, prove to have a positive impact on firm performance, while employee ownership concentration has a negative one. The higher proportion of outside directors and the change in the board composition following privatization have a positive effect on firm performance. These results could have some important policy implications where private ownership by foreign investors seems to add more value to firms, while selling state-owned enterprises (SOEs) to employees is not recommended. Also, the state is highly advised to relinquish control and allow for changes in the board of directors following privatization as changing ownership, per se, might not have a positive impact on firm performance unless it is coupled with a new management style.

    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.erf.org.eg/CMS/getFile.php?id=1472
    Our checks indicate that this address may not be valid because: 500 Can't connect to www.erf.org.eg:80 (10060). If this is indeed the case, please notify (Namees Nabeel)
    Download Restriction: no

    File URL: http://www.erf.org.eg/cms.php?id=NEW_publication_details_working_papers&publication_id=1133
    Our checks indicate that this address may not be valid because: 500 Can't connect to www.erf.org.eg:80 (10060). If this is indeed the case, please notify (Namees Nabeel)
    Download Restriction: no

    Bibliographic Info

    Paper provided by Economic Research Forum in its series Working Papers with number 495.

    as in new window
    Length: 27 pages
    Date of creation: Jun 2009
    Date of revision: Jun 2009
    Publication status: Published by The Economic Research Forum (ERF)
    Handle: RePEc:erg:wpaper:495

    Contact details of provider:
    Postal: 7 Boulos Hanna Street, Dokki, Cairo
    Phone: 202-3370810
    Fax: 202-3616042
    Email:
    Web page: http://www.erf.org.eg
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

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

    Citations

    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:erg:wpaper:495. 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: (Namees Nabeel).

    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.