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The Choice of Privatization Method and the Financial Performance of Newly Privatized Firms in Transition Economies

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  • Ranko Jelic
  • Richard Briston
  • Wolfgang Aussenegg

Abstract

There is a gap between the theoretical literature which almost unanimously advocates the privatization of enterprises, as part of the solution to the commitment problem in economies in transition, and the empirical evidence regarding the best way to design a privatization program in order to secure an efficient use of resources. This paper contributes to this debate by focusing on the determinants of the financial long‐run performance of privatized firms in Poland, Hungary, and the Czech Republic. This long‐run performance is mainly influenced by the extent of retained state ownership, the choice of privatization method, and firm size.

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  • Ranko Jelic & Richard Briston & Wolfgang Aussenegg, 2003. "The Choice of Privatization Method and the Financial Performance of Newly Privatized Firms in Transition Economies," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(7‐8), pages 905-940, September.
    • Handle: RePEc:bla:jbfnac:v:30:y:2003:i:7-8:p:905-940
    DOI: 10.1111/1468-5957.05583
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    References listed on IDEAS

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    Cited by:

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    2. Evžen Kočenda & Jan Hanousek, 2012. "State ownership and control in the Czech Republic," Economic Change and Restructuring, Springer, vol. 45(3), pages 157-191, August.
    3. Polona Peterle & Ales S. Berk, 2016. "IPO Cycles in Central and Eastern Europe: What Factors Drive these Cycles?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 66(2), pages 113-139, April.

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