Vliv rozdělení českých podniků na ziskovost a produktivitu

Effect of the Czech Firms Break-Up on their Profitability and Productivity

Evžen Kočenda and Jan Hanousek

Politická ekonomie, 2011, vol. 2011, issue 5, 579-598

Abstract: In this article we analyze medium- and long-term effects of firm break-up (and subsequent change in ownership) on its profitability and productivity. We use an extensive data-set of the Czech firms for the period 1996-2005. We employ the propensity score based matching methodology to account for potential endogeneity. Our results show that initial effects of the firm break-up are positive but they vanish in five to seven years after the break-up. Hence, the break-up of large and less efficient companies delivers a positive effect on corporate performance for a period of time. The effect is not permanent, though. Subsequent development in profitability and productivity is likely affected by ownership structure, corporate governance and other micro-level factors.

Keywords: privatization; corporate performance; endogeneity; break-up of firms; ownership changes; emerging markets; propensity score matching procedure (search for similar items in EconPapers)
JEL-codes: D23 G32 G34 L20 M21 P47 (search for similar items in EconPapers)
Date: 2011
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DOI: 10.18267/j.polek.809

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