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Determinants of Ultimate Control of Large Firms in Transition Countries: Empirical Evidence

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  • Klaus Gugler
  • Dennis C. Mueller
  • Evgeni Peev

Abstract

We identify the ultimate ownership structures of the 20 largest firms in 12 transition countries in 1996, and the subsequent patterns of ownership change over 1996-2008. Of the state-controlled companies in 1996 more than half are still in state hands in 2008. Better quality of governmental institutions, larger external but not domestic government debt, smaller company size, and higher company profitability increase the likelihood of privatization as well as the likelihood that the company ends up ultimately in foreign hands. We document that, after 20 years, control structure and institutional quality convergence on the West is still largely incomplete.

Suggested Citation

  • Klaus Gugler & Dennis C. Mueller & Evgeni Peev, 2013. "Determinants of Ultimate Control of Large Firms in Transition Countries: Empirical Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(2), pages 275-303, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201306)169:2_275:doucol_2.0.tx_2-t
    DOI: 10.1628/093245613X13626680790513
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    References listed on IDEAS

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    4. Kate Bishop & Igor Filatotchev & Tomasz Mickiewicz, 2002. "Endogenous ownership structure: factors affecting the post-privatisation equity in largest Hungarian firms," UCL SSEES Economics and Business working paper series 5, UCL School of Slavonic and East European Studies (SSEES).
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    More about this item

    JEL classification:

    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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