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Staged Privatization: Transforming State-Owned Enterprises into Market-Based Firms

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  • Kun Jiang
  • Susheng Wang

Abstract

Most privatizations around the world, especially in developed economies, are staged processes involving multiple stages of share lockup and unlocking in the stock market. This paper proposes a theory on staged or step-by-step privatization. We show that such an approach is efficient, in the sense that it can successfully transform state-owned enterprises into efficient market-based firms. Our theory explains the popularity of staged privatizations around the world. We have also conducted empirical analysis, yielding supporting evidence for our theory.

Suggested Citation

  • Kun Jiang & Susheng Wang, 2016. "Staged Privatization: Transforming State-Owned Enterprises into Market-Based Firms," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(4), pages 694-726, December.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201612)172:4_694:sptsei_2.0.tx_2-b
    DOI: 10.1628/093245616X14618208477844
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    2. John Bennett & James Maw, 2019. "Bargaining externalities in a privatization programme," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(2), pages 447-455, February.

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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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