The Economic Effects of Privatization: Evidence from a Russian Panel
By using new panel survey data for 1992–1996 for a sample of firms in St. Petersburg we present evidence on the incidence of, changes in, and the effects of ownership and control that have occurred since privatization. We find that ownership changes have been quite fast and are heterogeneous. Ownership by insiders remains very strong and the importance of managerial insider ownership is growing. At the same time, in many firms, ownership by outsiders assumes increasing significance. The links between ownership and control are found to be quite complex.Whether these organizational changes affect economic performance is investigated in a series of preliminary exercises in which we estimate models in “privatization time.“ We find that the impact of privatization per se is quite weak and thus appears to be quite different from what has been found in studies for some other transition economies. In accounting for differences in economic performance, for all performance measures we find support for the hypothesis that the preferred specification includes measures not only of ownership levels at the end of the period but also ownership-transitions and variables which capture variation in the level of control. Bank ownership is shown to be much more effective in improving economic performance than is ownership by individuals. Firms which remain employee owned performed much more poorly than did firms in which managers continued as the dominant owners. However, both types of firms which became owned by managers during the period did very badly, and especially firms which were formerly owned by the state. There is evidence that low and medium levels of managerial power typically have beneficial effects on economic performance. Evidence of the effects of changes in control on economic performance typically is much weaker.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 40 (1998)
Issue (Month): 2 (July)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
When requesting a correction, please mention this item's handle: RePEc:pal:compes:v:40:y:1998:i:2:p:75-102. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Foley)
If references are entirely missing, you can add them using this form.