Ownership concentration, institutional development and firm performance in Central and Eastern Europe
AbstractThis paper analyzes the relationship of ownership concentration and firm performance in the context of different institutional environments in 28 Central and Eastern European transition economies. Using the BEEPS data for the period from 2002 to 2009 we find an inverted u-shaped relation of ownership concentration and firm performance for those firms that operate in non-EU-member countries as well as those firms that are situated in less developed legal systems according to Freedom House ratings. We interpret these findings as evidence for a classic agency problem in the lower part of the ownership concentration distribution that is dominated by a 'private benefits of control' problem with rising ownership concentration. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 10-096.
Date of creation: 2010
Date of revision:
corporate governance; firm growth; transition economies; ownership concentration;
Other versions of this item:
- Balsmeier, Benjamin & Czarnitzki, Dirk, 2010. "Ownership concentration, institutional development and firm performance in Central and Eastern Europe," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/286560, Katholieke Universiteit Leuven.
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-23 (All new papers)
- NEP-BEC-2011-01-23 (Business Economics)
- NEP-CIS-2011-01-23 (Confederation of Independent States)
- NEP-EEC-2011-01-23 (European Economics)
- NEP-EFF-2011-01-23 (Efficiency & Productivity)
- NEP-TRA-2011-01-23 (Transition Economics)
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