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Firm Performance and the Political Economy of Corporate Governance: Survey Evidence for Bulgaria, Hungary, Slovakia and Slovenia

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Author Info
Patrick Paul Walsh
Ciara Whelan

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Abstract

Using survey data for 220 traditional manufacturing firms over 7 years of transition and 4 CEE countries we show that firms which produced for the EU market under planning consistently outperform those that traditionally produced for the CMEA market. A gradualist selection process to outside privatisation of previously CMEA oriented firms induces outside ownership to outperform insider/state owned firms. A resistance to outside privatisation in firms inheriting EU markets ensures that ownership structure has no effect on firm performance. Conditioning our analysis on initial demand conditions helps unravel puzzling empirical outcomes in relation to issues of corporate governance during transition.

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File URL: http://www.econ.kuleuven.ac.be/licos/DP/DP1999/LICOSDP85.pdf
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Publisher Info
Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 8599.

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Length: 35 pages
Date of creation: 1999
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Handle: RePEc:lic:licosd:8599

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Related research
Keywords: Privatisation; Political Economy and Firm Performance;

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Find related papers by JEL classification:
P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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References listed on IDEAS
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.:
  1. Rodrik, Dani, 1992. "Foreign Trade in Eastern Europe's Transition: Early Results," CEPR Discussion Papers 676, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  1. Štefan Bojnec & Ana Xavier, 2004. "Entry and exit in transition economies: the Slovenian manufacturing sector," Post-Communist Economies, Taylor and Francis Journals, vol. 16(2), pages 191-214, June. [Downloadable!] (restricted)
  2. Richard B. Goud Jr., 2002. "Ownership and Firm Performance: Evidence from 25 Countries in Central and Eastern Europe and the Former Soviet Union," Development and Comp Systems 0207002, EconWPA. [Downloadable!]
  3. Angelucci, Manuella & Bevan, Alan & Estrin, Saul & Fennema, Julian A & Kuznetsov, Boris & Mangiarotti, Giovanni & Schaffer, Mark E, 2002. "The Determinants of Privatized Enterprise Performance in Russia," CEPR Discussion Papers 3193, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Marko Simoneti & Aleksandra Gregoric, 2004. "Managerial ownership and corporate performance in Slovenian post-privatisation period," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 1(2), pages 217-241, December. [Downloadable!]
  5. Paul Frijters & Dirk Bezemer & Uwe Dulleck, 2003. "Socialism, Capitalism, and Transition - Coordination of Economic Relations and Output Performance," Paul Frijters Discussion Papers 2003, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
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