Restructuring of Large Firms in Slovakia
AbstractThis paper examines case study evidence of large Slovak firms chosen to represent a wide range of initial conditions, privatization techniques and success with restructuring. We document the ownership changes and restructuring actions of firms. We then re-examine several hypotheses about firm restructuring in the light of this new evidence. In particular, we show that the majority of large Slovak firms have successfully restructured in the absence of foreign investors and government-led restructuring programs. The study also throws some new queries on the effectiveness of different privatization methods in enhancing corporate governance and improving access to skills and capital. We find that privatization to insiders through management-employee buy-outs did not hamper firm restructuring as the new owners (old managers) invested heavily in new technology, laid off substantial part of their workforce, sought foreign partnerships, and were prepared to sell controlling stakes to outsiders in return for fresh financial resources. The evidence also suggests that the mass privatization program did not result in weak corporate governance since it was followed by a rapid consolidation of ownership. Our findings support the view that the main objective of privatization programs should be the speedy transformation of ownership, not the selection of perfect owners.
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.
Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 73.
Date of creation: 01 Mar 1997
Date of revision:
Contact details of provider:
Postal: 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109
Phone: 734 763-5020
Fax: 734 763 5850
Web page: http://www.wdi.umich.edu
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-04-03 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Pehr-Johan Norbäck & Lars Persson, 2012.
"Privatization, investment, and ownership efficiency,"
Oxford Economic Papers,
Oxford University Press, vol. 64(4), pages 765-786, October.
- Friberg, Richard & Norbäck, Pehr-Johan & Persson, Lars, 2008. "Privatization, Investment and Ownership Efficiency," Working Paper Series, Research Institute of Industrial Economics 744, Research Institute of Industrial Economics.
- Jennifer Foo & Dorota Witkowska, 2008. "Transitional Progress and Business Challenges," International Advances in Economic Research, Springer, Springer, vol. 14(2), pages 215-227, May.
- Helena Hannula & Katrin Tamm, 2002. "Restructuring And Efficiency In The Estonian Manufacturing Industry: The Role Of Foreign Ownership," University of Tartu - Faculty of Economics and Business Administration Working Paper Series, Faculty of Economics and Business Administration, University of Tartu (Estonia) 15, Faculty of Economics and Business Administration, University of Tartu (Estonia), revised 2003.
- Tito Boeri, 1999.
"Transition with Labour Supply,"
William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan
274, William Davidson Institute at the University of Michigan.
- Norbäck, Pehr-Johan & Persson, Lars, 2003.
"Privatization and Restructuring in Concentrated Markets,"
Working Paper Series, Research Institute of Industrial Economics
605, Research Institute of Industrial Economics.
- Norbäck, Pehr-Johan & Persson, Lars, 2005. "Privatization and Restructuring in Concentrated Markets," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4871, C.E.P.R. Discussion Papers.
- Pehr-Johan Norback & Lars Persson, 2004. "Privatization and Restructuring in Concentrated Markets," Working Papers, Fondazione Eni Enrico Mattei 2004.107, Fondazione Eni Enrico Mattei.
- Irina Akimova & Gerhard Schwödiauer, 1999. "Restructuring of Ukrainian Enterprises after Privatization: Does Ownership Structure Matter?," Industrial Organization, EconWPA 9903003, EconWPA.
- Alexander Pivovarsky, 2001. "How Does Privatization Work? Ownership Concentration and Enterprise Performance in Ukraine," IMF Working Papers 01/42, International Monetary Fund.
- Frydman, Roman & Gray, Cheryl W. & Hessel, Marek & Rapaczynski, Andrzej, 1997. "Private ownership and corporate performance : some lessons from transition economies," Policy Research Working Paper Series 1830, The World Bank.
- Schröder, Philipp J.H., 2000. "On Privatisation and Restructuring," MPRA Paper 89, University Library of Munich, Germany, revised 2006.
- Claessens, Stijn & Djankov, Simeon, 1998. "Politicians and firms in seven central and eastern European countries," Policy Research Working Paper Series 1954, The World Bank.
- Morris Bornstein, 2001. "Post-privatisation Enterprise Restructuring," Post-Communist Economies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(2), pages 189-203.
- Debora Revoltella, 2001. "Financing Enterprises in the Czech Republic: Debt and Firm-specific Variables," Economic Change and Restructuring, Springer, Springer, vol. 34(3), pages 231-246, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurie Gendron).
If references are entirely missing, you can add them using this form.