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The Evolution of Ownership Structure in Firms Privatized through Wholesale Schemes in the Czech Republic and Poland

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  • Irena Grosfeld
  • Iraj Hashi

Abstract

We compare the change in ownership concentration in firms privatized through two different programs of mass privatization: the Czech voucher scheme and the Polish program of National Investment Funds. Despite important differences in ownership structure at the start of the process and in the quality of legal and regulatory environments, the emerging ownership patterns are remarkably similar in the two groups of firms: high concentration and the emergence of industrial corporations and individuals as important dominant shareholders. Given the important evolution of ownership, we take ownership structure as endogenous and look at its determinants. We find in particular that ownership concentration depends on the degree of uncertainty in the firm's environment. In a more risky environment firms tend to have more dispersed ownership. We interpret this result in the light of the recent theories of the firm stressing the trade-off between managerial initiative and shareholder control.

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Bibliographic Info

Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Reports with number 0049.

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Length: 37 Pages
Date of creation: 2001
Date of revision:
Handle: RePEc:sec:cnrepo:0049

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Keywords: privatization; secondary transactions; corporate governance; transition economies; Czech Republic; Slovenia; Poland;

References

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Citations

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Cited by:
  1. Barbara Blaszczyk & Iraj Hashi & Alexander Radygin & Richard Woodward, 2003. "Corporate Governance and Ownership Structure in the Transition: The Current State of Knowledge and Where to Go from Here," CASE Network Studies and Analyses, CASE-Center for Social and Economic Research 0264, CASE-Center for Social and Economic Research.
  2. Andreja Bohm & Joze P. Damijan & Boris Majcen & Marko Rems & Matija Rojec & Marko Simoneti, 2001. "Secondary Privatization in Slovenia: Evolution of Ownership Structure and Company Performance Following Mass Privatization," CASE Network Reports, CASE-Center for Social and Economic Research 0046, CASE-Center for Social and Economic Research.

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