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Postprivatization Corporate Governance: the Role of Ownership Structure and Investor Protection

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Author Info

  • Narjess Boubakri

    (Hec Montreal, Montreal, Canada)

  • Jean-Claude Cosset

    (Université Laval, Quebec, Canada)

  • Omrane Guedhami

    (Université Laval, Quebec, Canada)

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    Abstract

    We investigate the role of ownership structure and investor protection in postprivatization corporate governance. We find that the government relinquishes control over time, mainly to the benefit of local institutions and foreign investors. We also show that private ownership tends to concentrate over time. In addition to firm-level variables, investor protection, political and social stability explain the cross-firm differences in ownership concentration. We find that the positive effect of ownership concentration on firm performance matters more in countries with weak investor protection and that private domestic ownership leads to higher performance.

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    Bibliographic Info

    Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2003.37.

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    Date of creation: Apr 2003
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    Handle: RePEc:fem:femwpa:2003.37

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    Keywords: Corporate governance; privatization; performance;

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    Cited by:
    1. Attiya Y. Javid & Robina Iqbal, 2010. "Corporate Governance in Pakistan : Corporate Valuation, Ownership and Financing," Governance Working Papers 22830, East Asian Bureau of Economic Research.

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