Performance after Mass Privatisation :The Case of Slovenia” Marko Simoneti, Joze P. Damijan, Boris Majcen, Matija Rojec
Initial ownership structures resulting from the mass privatisation programme were intended as transitional, whereas optimal would be set up gradually and would result from secondary transactions. Therefore, mass privatisation is typically considered successful if secondary transactions lead to improved ownership, in particular, with emergence of strategic investors. If this approach is correct, positive effects of mass privatisation are thus not shown only by companies remaining in control of initial owners but mostly by the companies that have already gone through secondary privatisation. Accordingly, the success of secondary sales is to be evaluated by how successfully companies perform after the sale to new owners. This paper attempts to verify empirically those assumptions. The econometric analysis of panel data, after correcting for a selection bias, shows that TFP (total factor productivity) growth is highest in public companies. In addition we found that the secondary privatisation has had practically no positive effect on economic efficiency in the period 1995-99. We interpret these results as supporting evidence for the theoretical approach, which argues that the impact of strategic investors on performance may be ambiguous and that the quality of the capital market institutions is more important than ownership effects. The former creates incentives for performance by increasing the cost of expropriation of minority shareholders.
|Date of creation:||Feb 2002|
|Date of revision:|
|Contact details of provider:|| Postal: Gower Street, London WC1E 6BT|
Phone: +44-20-7679 8519
Fax: +44-20-7679 8777
Web page: http://www.ssees.ucl.ac.uk/csesce.htm
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:see:wpaper:10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gerry, Christopher J.)The email address of this maintainer does not seem to be valid anymore. Please ask Gerry, Christopher J. to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.