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Channels of Restructuring in Privatized Czech Companies

  • Jana Fidrmucova

    (Tilburg University)

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    Wide variety of restructuring activities in the former state-owned enterprises has been documented in the literature. The present paper provides an analysis of channels of restructuring in a panel of 483 Czech companies privatized by the voucher method. The fixed-effects model with observations between 1993 and 1997 is used for this purpose. The results indicate that asset sale, labor shedding, employee incentives, sales growth, and inventory management serve as channels through which performance of the privatized companies measured by sale efficiency is improved. On the other hand, investment is not found to be a significant determinant of enterprise performance. Furthermore, the analysis suggests that the companies still face a soft budget constraint.

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    File URL: http://fmwww.bc.edu/RePEc/es2000/1358.pdf
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    Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 1358.

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    Date of creation: 01 Aug 2000
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    Handle: RePEc:ecm:wc2000:1358
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