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Divide and Privatize : Firms Break-up and Performance

  • Evžen Kočenda

    ()

    (Osteuropa-Institut, Regensburg (Institut for East European Studies))

  • Jan Hanousek

We analyze the long-term effects of divesture and ownership change on corporate per-formance. We employ a unique data set for a large number of Czech firms spanning the period 1996–2005. We employ a propensity score matching procedure to deal with endogeneity problems. Our results, which are generally in line with the positive effects of divestiture found in the developed-market literature, show that the initial effects of di-vestiture are positive but after a certain point they quickly diminish over time.

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Paper provided by Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies) in its series Working Papers with number 291.

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Length: 33
Date of creation: Oct 2010
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Handle: RePEc:ost:wpaper:291
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  17. Rajeev H. Dehejia & Sadek Wahba, 1998. "Propensity Score Matching Methods for Non-experimental Causal Studies," NBER Working Papers 6829, National Bureau of Economic Research, Inc.
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