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Postprivatization Corporate Governance: the Role of Ownership Structure and Investor Protection

Author

Listed:
  • Narjess Boubakri

    (Hec Montreal, Montreal, Canada)

  • Jean-Claude Cosset

    (Université Laval, Quebec, Canada)

  • Omrane Guedhami

    (Université Laval, Quebec, Canada)

Abstract

We investigate the role of ownership structure and investor protection in postprivatization corporate governance. We find that the government relinquishes control over time, mainly to the benefit of local institutions and foreign investors. We also show that private ownership tends to concentrate over time. In addition to firm-level variables, investor protection, political and social stability explain the cross-firm differences in ownership concentration. We find that the positive effect of ownership concentration on firm performance matters more in countries with weak investor protection and that private domestic ownership leads to higher performance.

Suggested Citation

  • Narjess Boubakri & Jean-Claude Cosset & Omrane Guedhami, 2003. "Postprivatization Corporate Governance: the Role of Ownership Structure and Investor Protection," Working Papers 2003.37, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2003.37
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    References listed on IDEAS

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    Cited by:

    1. Attiya Y. Javid & Robina Iqbal, 2010. "Corporate Governance in Pakistan: Corporate Valuation, Ownership and Financing," PIDE-Working Papers 2010:57, Pakistan Institute of Development Economics.

    More about this item

    Keywords

    Corporate governance; privatization; performance;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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