EconPapers    
Economics at your fingertips  
 

The effects of a monopolistic market structure on the assessment of privatized companies: the Colombia case

Jaime Andrés Collazos () and Héctor Ochoa D. ()
Additional contact information
Jaime Andrés Collazos: Banco de la República de Colombia
Héctor Ochoa D.: ICESI

Ensayos sobre Economía Regional (ESER) from Banco de la Republica de Colombia

Abstract: The purpose of this study is to determine whether companies privatized in Colombia during the 1990s had a substantial increase in productivity and profitability as a result of management changes that must have occurred or, on the contrary, these companies continued to have similar performance levels. The latter contradicts the assumption that new owners would implement substantial strategic changes - as international experience shows. If this is the case, then it would be fit to raise the following question: "What circumstances may have encouraged new owners not to make any substantial changes to the business strategies for their recently acquired companies?" A possible answer to this question is that, on the one hand, the approaches of the government to the privatization process, particularly with regard to the screening of purchasers, and on the other hand, the level of concentration of the resulting market structure after privatization could account for the difference in the behavior of new entrepreneurs vs. international practice. If the negotiating process of these companies was not transparent enough or the resulting market structure was not competitive enough, then there might not be insufficient incentives for new owners to behave more efficiently.

Keywords: Privatization; Colombia; Estate-owned companies; Wilcoxon´s test; Use (search for similar items in EconPapers)
JEL-codes: D4 D6 L1 L2 M0 (search for similar items in EconPapers)
Pages: 34
Date: 2005-06
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.32468/eser.28I (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not found (https://doi.org/10.32468/eser.28I [302 Found]--> https://repositorio.banrep.gov.co/bitstream/bitstream/handle/20.500.12134/2038/eser.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdr:eserdt:28i

Access Statistics for this paper

More papers in Ensayos sobre Economía Regional (ESER) from Banco de la Republica de Colombia Cra 7 # 14-78 Piso 12. Contact information at EDIRC.
Bibliographic data for series maintained by Clorith Angélica Bahos Olivera ().

 
Page updated 2024-07-14
Handle: RePEc:bdr:eserdt:28i