Choice of Ownership Structure and Firm Performance: Evidence from Estonia
dc.contributor.author | Jones, Derek C. | en_US |
dc.contributor.author | Kalmi, Panu | en_US |
dc.contributor.author | Mygind, Niels | en_US |
dc.date.accessioned | 2006-08-01T16:38:43Z | |
dc.date.available | 2006-08-01T16:38:43Z | |
dc.date.issued | 2003-05-06 | en_US |
dc.identifier.other | RePEc:wdi:papers:2003-560 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/39945 | en_US |
dc.description.abstract | In this paper we use rich panel data for a representative sample of Estonian enterprises to analyse diverse issues related to the determinants of ownership structures and ownership changes after privatisation. A key focus is to determine whether ownership changes are related to economic efficiency. While employee owned firms are found to be much more prone than other firms to switch ownership categories, often “employee owned” firms remain “insider-owned” as ownership passes from current employees to managers and former employees. Logit analyses of the determinants of ownership structures and ownership changes provides mixed support for several hypotheses. As predicted: (i) wealth and resource constraints play a crucial role in the determination of ownership, with foreigners buying firms with the highest equity levels and insiders buying firms with the lowest equity valuations; (ii) risk aversion explains subsequent ownership changes, especially away from employee ownership; (iii) allocation of ownership depends on the pre-privatisation origin and location of the firm, and these factors also influence subsequent ownership changes. Finally we compare our findings with those achieved by using more conventional approaches to analyze efficiency that use very similar data. Reassuringly the evidence presented in this paper is consistent with the view that efficiency considerations drive ownership changes (while earlier analysis for Estonia and for many other transition economies has identified the impact of ownership on economic performance.) However, the findings in this paper also establish that there are important influences besides economic efficiency that affect enterprise ownership and ownership changes. | en_US |
dc.format.extent | 108952 bytes | |
dc.format.extent | 3151 bytes | |
dc.format.extent | 577556 bytes | |
dc.format.mimetype | text/plain | |
dc.format.mimetype | text/plain | |
dc.format.mimetype | application/pdf | |
dc.language.iso | en_US | en_US |
dc.relation.ispartofseries | 560 | en_US |
dc.subject | Privatisation, Ownership Change, Employee Ownership, Transition Economies, Estonia | en_US |
dc.subject.other | G3, J5, P2, P3 | en_US |
dc.title | Choice of Ownership Structure and Firm Performance: Evidence from Estonia | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/39945/3/wp560.pdf | en_US |
dc.owningcollname | William Davidson Institute (WDI) - Working Papers |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.