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Better governance matters optimal privatization policy

Listed author(s):
  • Leonard Wang

    ()

  • Tien-Der Han
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    The quality of corporate governance is influential to operating efficiency of a public firm and thereby affects the government’s privatization policies. Within a mixed duopoly market, this paper considers corporatization and related corporate governance improving in economic sense to show that the effects of public firm’s governance enhancement can be extracted out from the effects of privatization. More importantly, the optimal privatization policy should be a flexible instrument hinging on the extent of governance improvement. Scenarios with a less efficient or an equally efficient public firm are considered and the result holds in both scenarios. Hence policy implications apply. Copyright Eurasia Business and Economics Society 2015

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    File URL: http://hdl.handle.net/10.1007/s40822-015-0025-6
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    Article provided by Springer & Eurasia Business and Economics Society in its journal Eurasian Economic Review.

    Volume (Year): 5 (2015)
    Issue (Month): 2 (December)
    Pages: 189-206

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    Handle: RePEc:spr:eurase:v:5:y:2015:i:2:p:189-206
    DOI: 10.1007/s40822-015-0025-6
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