The value of government ownership during the global financial crisis
Marc Deloof and
Journal of Corporate Finance, 2017, vol. 42, issue C, 481-493
This paper examines the value of government ownership in Europe during the global financial crisis. This crisis was an exogenous shock for European firms, which allows us to observe an out-of-equilibrium effect on the costs and benefits of government ownership. Using a comprehensive sample of 4737 listed firms in 28 European countries over the period 2005–2009, we find that firms with government ownership experienced a smaller reduction in firm value than firms without government ownership. This effect was driven by firms located in countries where the risk of expropriation by the government is lower, that is, countries with less corruption and better investor protection.
Keywords: Government ownership; Global financial crisis; Firm value; Institutional quality; Europe (search for similar items in EconPapers)
JEL-codes: G01 G31 G38 H81 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:42:y:2017:i:c:p:481-493
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