EconPapers    
Economics at your fingertips  
 

The Impact of Privatisation on the Performance of Medium and Large Industrial Enterprises

Dobrodey Vladimir, Gimadi Ilya () and Yuri Perevalov ()

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: The study, based on panel data from 198 industrial enterprises in the Sverdlovsk Oblast during 1992-1996, provides empirical evidence on the impact of privatisation upon the performance of medium, large and extra-large industrial enterprises. The study shows that privatisation "on average" produces performance improvements only in operating profit margin and, to some extent, in the productivity of labour. We revealed that methods (options) of privatisation had not only a positive but also a negative impact on the performance of enterprises. The state seems to be a passive shareholder. However, our results suggest that not only full privatisation but also majority state ownership is preferable to a state minority stakeholding, possibly because of the absence of a monitoring shareholder in the latter case with which to prevent managers achieving their own objectives at the expense of other shareholders. That is why the state should keep majority control over privatised enterprises or diminish its stake below 5% in order to avoid the negative drop in performance results caused by the absence of a monitoring shareholder.

Pages: 84 pages
Date: 2001-04-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://eercnetwork.com/default/download/creater/w ... 3f4ce3e175912f88.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to eercnetwork.com:443 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

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:eer:wpalle:2k/01e

Ordering information: This working paper can be ordered from
EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine
https://eercnetwork.com/paper

Access Statistics for this paper

More papers in EERC Working Paper Series from EERC Research Network, Russia and CIS EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine.
Bibliographic data for series maintained by Anton Pashchenko ().

 
Page updated 2021-10-25
Handle: RePEc:eer:wpalle:2k/01e