Divide and Privatize: Firms Break-up and Performance

Evžen Kočenda and Jan Hanousek

No 291, Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies)

Abstract: 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.

Keywords: firm divestiture; corporate performance; ownership changes; privatization; emerging markets; endogeneity; propensity score matching procedure (search for similar items in EconPapers)
JEL-codes: D23 G32 G34 L20 M21 P47 (search for similar items in EconPapers)
Pages: 33
Date: 2010-10
New Economics Papers: this item is included in nep-com, nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Firm break-up and performance (2012)
Working Paper: Divide and Privatize: Firm Break-up and Performance (2011)
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