Rozdělení, privatizace podniků a jejich výkonnost

Breakups, privatization and firms" performance

Jan Hanousek, Evžen Kočenda and Jan Svejnar

Politická ekonomie, 2006, vol. 2006, issue 4, 467-489

Abstract: This paper uses new firm-level data to examine the effects of breakups of the Czech firms and their subsequent privatization on corporate performance. Unlike the existing literature, which analyzes breakups almost exclusively in advanced economies, we control for accompanying ownership changes and the fact that spinoffs and ownership are endogenous variables. We find that breakups increase the firm's profitability but do not alter its scale of operations, while the effect of privatization depends on the resulting ownership structure - sometime improving performance and sometime bringing about decline. The effects of privatization are hence less clear-cut than suggested in earlier studies. Methodologically, our study provides evidence that it is important to control for changes in ownership when analyzing divestitures and control for endogeneity, selection and data attrition when analyzing the effects of breakups and privatization.

Keywords: privatization; breakups; corporate performance; endogeneity; firms? division (search for similar items in EconPapers)
JEL-codes: D23 G32 G34 L20 M21 P47 (search for similar items in EconPapers)
Date: 2006
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DOI: 10.18267/j.polek.569

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