Ownership concentration, institutional development and firm performance in Central and Eastern Europe

Benjamin Balsmeier and Dirk Czarnitzki

No 10-096, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper analyzes the relationship of ownership concentration and firm performance in the context of different institutional environments in 28 Central and Eastern European transition economies. Using the BEEPS data for the period from 2002 to 2009 we find an inverted u-shaped relation of ownership concentration and firm performance for those firms that operate in non-EU-member countries as well as those firms that are situated in less developed legal systems according to Freedom House ratings. We interpret these findings as evidence for a classic agency problem in the lower part of the ownership concentration distribution that is dominated by a 'private benefits of control' problem with rising ownership concentration.

Keywords: corporate governance; firm growth; transition economies; ownership concentration (search for similar items in EconPapers)
JEL-codes: G32 L25 O16 P31 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-bec, nep-cis, nep-eec, nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Journal Article: Ownership Concentration, Institutional Development and Firm Performance in Central and Eastern Europe (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:10096

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