Development of Ownership Structure and its Effect on Performance: Czech Firms from Mass Privatization

Kočenda, Evžen

doi:10.2139/ssrn.1514396

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Development of Ownership Structure and its Effect on Performance: Czech Firms from Mass Privatization

CERGE-EI Working Paper Series No. 188

30 Pages Posted: 30 Nov 2009

See all articles by Evžen Kočenda

Evžen Kočenda

Charles University in Prague - Institute of Economic Studies; Institute of Information Theory and Automation (Czech Academy of Sciences) - Department of Econometrics; CESifo; University of Regensburg - Institute for East and Southeast European Studies; University of Michigan at Ann Arbor - The William Davidson Institute

Date Written: November 1, 2001

Abstract

This paper works with a broad data sample of Czech voucher-privatized firms during 1996-1999. It analyzes the development of ownership structure and consequently its effect on a firm's performance Ownership concentration had been quite high in 1996 and steadily increased. The single largest owner was found to be a decisive shareholder. Industrial companies have been the most stable shareholder and recorded the largest ownership gains. Ownership concentration alone does not explain a change in a firm’s performance and no industry sector was found to have a specific effect on it. We found evidence that several types of owners have an effect on certain performance measures. However, there does not exist support that type of owner has an effect on a firm's performance in general.

Keywords: Ownership structure, firm's performance, voucher privatization, type of owner, panel data

JEL Classification: C23, D21, G32, L2

Suggested Citation: Suggested Citation

Kocenda, Evzen, Development of Ownership Structure and its Effect on Performance: Czech Firms from Mass Privatization (November 1, 2001). CERGE-EI Working Paper Series No. 188, Available at SSRN: https://ssrn.com/abstract=1514396 or http://dx.doi.org/10.2139/ssrn.1514396