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Residual State Property in the Czech Republic


  • Evžen Kočenda


Privatization in the Czech Republic was carried out under three programs: restitution, small privatization and large privatization. By far the most important privatization program in the Czech Republic was large-scale privatization that began in the spring of 1991. Large privatization allowed combinations of several privatization techniques. The largest firms were transformed into joint stock companies, the shares of which were distributed within voucher privatization (almost one half of the total number of all shares of all joint stock companies was privatized), sold for cash or transferred for free to municipalities. Despite the massive scale of the voucher privatization, there still remains a substantial number of companies where the state has been involved. The total number of 1849 companies of a book value of 367.5 billions entered both waves of voucher privatization. In 1998 the state has kept its involvement in 369 companies with the overall book value of more than 440 billions crowns. The book value of the state share in these companies amounted to almost 177 billions crowns. A great number of these companies was "privatized" through voucher privatization but the state did not privatize them entirely. An analysis showed that 76% of the assets (book value of the above companies) is possible to be influenced by the state. One cannot but to conclude that, despite the voucher privatization, the state sustained its influence over the significant part of the Czech economy. In view of the facts it seems legitimate to question the official success of the voucher privatization. There exist a clear consensus that further privatization of the residual state property is both necessary and inevitable.
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Suggested Citation

  • Evžen Kočenda, 1999. "Residual State Property in the Czech Republic," Eastern European Economics, Taylor & Francis Journals, vol. 37(5), pages 6-35, October.
  • Handle: RePEc:mes:eaeuec:v:37:y:1999:i:5:p:6-35

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    References listed on IDEAS

    1. Aghion, Philippe & Blanchard, Olivier & Burgess, Robin, 1994. "The behaviour of state firms in eastern Europe, pre-privatisation," European Economic Review, Elsevier, vol. 38(6), pages 1327-1349, June.
    2. Turnovec, Frantisek, 1999. "Privatization, ownership structure and transparency: how to measure the true involvement of the state," European Journal of Political Economy, Elsevier, vol. 15(4), pages 605-618, November.
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    Cited by:

    1. Lubom??r L??zal, 2002. "Determinants of Financial Distress: What Drives Bankruptcy in a Transition Economy? The Czech Republic Case," William Davidson Institute Working Papers Series 451, William Davidson Institute at the University of Michigan.
    2. Iwasaki, Ichiro & Kočenda, Evžen, 2017. "Are some owners better than others in Czech privatized firms? Even meta-analysis can’t make us perfectly sure," Economic Systems, Elsevier, vol. 41(4), pages 537-568.
    3. Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009. "Divestitures, privatization and corporate performance in emerging markets," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(1), pages 43-73, January.
    4. Earnhart, Dietrich & Lizal, Lubomir, 2002. "Effects of Ownership and Financial Status on Corporate Environmental Performance," CEPR Discussion Papers 3557, C.E.P.R. Discussion Papers.
    5. Evžen Kočenda & Jan Hanousek, 2010. "Divide and Privatize : Firms Break-up and Performance," Working Papers 291, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    6. Lizal, Lubomir & Kocenda, Evzen, 2001. "State of corruption in transition: case of the Czech Republic," Emerging Markets Review, Elsevier, vol. 2(2), pages 138-160, June.
    7. Ondrej Vychodil, 2005. "Ownership Concentration and Restructuring in Czech Manufacturing Sector," Finance 0511004, EconWPA.
    8. Jan Bena & Jan Hanousek, 2008. "Rent Extraction by Large Shareholders: Evidence Using Dividend Policy in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 58(03-04), pages 106-130, May.
    9. Evzen Kocenda & Jan Hanousek, 2012. "Firm break-up and performance," Economics of Governance, Springer, vol. 13(2), pages 121-143, June.
    10. Jan Svejnar & Evzen Kocenda, 2002. "The Effects of Ownership Forms and Concentration on Firm Performance after Large-Scale Privatization," William Davidson Institute Working Papers Series 471, William Davidson Institute at the University of Michigan.
    11. Lubomir Lizal & Evzen Kocenda, 2001. "The Paradox of Czech Crusaders: Will They Ever Learn the Corruption Lesson? (Corruption and Anticorruption in the Czech Republic)," CERGE-EI Working Papers wp171, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    12. Jan Hanousek & Evžen Kočenda & Jan Svejnar, 2007. "Origin and concentration," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(1), pages 1-31, March.
    13. Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2004. "Ownership, Control and Corporate Performance after Large-Scale Privatization," Microeconomics 0406002, EconWPA.
    14. Barbara Blaszczyk & Richard Woodward, 2001. "Secondary Privatisation: The Evolution of Ownership Structures of Privatised Enterprises," CASE Network Reports 0050, CASE-Center for Social and Economic Research.
    15. Evžen Kočenda & Jan Hanousek, 2012. "State ownership and control in the Czech Republic," Economic Change and Restructuring, Springer, vol. 45(3), pages 157-191, August.
    16. Earnhart, Dietrich & Lizal, Lubomir, 2006. "Effects of ownership and financial performance on corporate environmental performance," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 111-129, March.
    17. Jana P. Fidrmuc, 2006. "Channels of Restructuring in Privatized Czech Companies," Working Papers wpn06-18, Warwick Business School, Finance Group.
    18. Jan Hanousek & Evžen Kočenda, 2011. "Learning by investing," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(1), pages 125-149, January.
    19. Baghdasaryan, Delia & la Cour, Lisbeth, 2013. "Competition, ownership and productivity. A panel analysis of Czech firms," Journal of Economics and Business, Elsevier, vol. 69(C), pages 86-100.

    More about this item

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions


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