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People versus Incentives: The Causes and Consequences of Managerial Change in Ukraine and the Complementary

Listed author(s):
  • Frederic Warzynski

This paper analyses the determinants of managerial change and the impact of privatisation,competition and managerial chenge on firm performance, using survey data from 300 Ukrainian firms. The main findings are: (i) Ownership and Competition are linked to managerial chenge: de novo firms but also privatised firms experienced less turnover than state firms, indicating an entrenchment effect. Firms with few competitors had less turnover as well. (ii) Managerial change and privatisation do not appear to play a role on their own but together postively affect profitability. (iii) Similarly, tough competition improves profitability and productivity in privatised firms only. These findings suggest that privatisation, competition and managerial change are complementary measures to improve the performance of the firm.

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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 8800.

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Length: 33 pages
Date of creation: 2000
Handle: RePEc:lic:licosd:8800
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