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The Choice of Ownership Structure

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  • Niels Mygind

    (Copenhagen Business School)

Abstract

This paper outlines main considerations for the design of ownership structures. Different types of ownership are defined, and their efficiency is analysed under different technical, social and cultural conditions. The conditions favouring democratic ownership are identified, and the analysis shows the importance of correspondence between ownership structure and cultural values. A main conclusion is that the employees must participate in the process of selection of ownership structure. In the concluding section a model for democratic privatization is outlined to give an example of such a process. The model is especially relevant to the transformation in Eastern Europe, but the main principles can also be applied to Western economies.

Suggested Citation

  • Niels Mygind, 1992. "The Choice of Ownership Structure," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 13(3), pages 359-399, August.
    • Handle: RePEc:sae:ecoind:v:13:y:1992:i:3:p:359-399
    DOI: 10.1177/0143831X92133004
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