Dominant shareholders, restructuring and performance of privatised companies in Russia: An analysis and some policy implications

Corporate Governance and Employee Ownership in an Economic Crisis: Enterprise Strategies in the Former USSR

“…However, in Russia, did derive random samples from populations of all firms, i.e., state-owned, privatized, and new start-ups. Given these circumstances, we adopt the same approach used by most researchers in this region (Blasi and Shleifer, 1996;Blasi et al, 1997;Aukutsionek et al, 1998). This approach employs the central limit theorem whereby, as sample sizes increase, means tend to be normally distributed around the population mean.…”

The effects of ownership concentration on investment and performance in privatized firms in Russia

“…There is mounting evidence, both in academic publications and in business research (e.g. Filatotchev et al, 1996Filatotchev et al, , 1999Aukutsionek et al, 1998;Kuznetsov and Muravyov, 2000), that the last few years have been characterized by a dramatic redistribution and concentration of ownership titles and associated voting rights in privatized firms. Following mass privatization, the 'loans-for-shares' scheme resulted in transferring ownership of some of the largest, more important companies to a few wellplaced Russian financial concerns.…”

Endogenous Ownership Structure

“…Yet, not many studies on post-privatisation outcomes in transition economies consider equity as endogenous. In a rare longitudinal study of 150 privatised companies in Russia, Aukutsionek et al (1998) identified a selection bias when outside investors bought into relatively successful companies, which confirms that cross-sectional studies of privatisation effects on restructuring and performance are questionable from the theoretical and empirical points of view.…”

“…Outside investors have been found to have both positive (e.g., Pohl et al, 1997) and neutral (e.g., Aukutsionek et al, 1998) effects on the extent of restructuring and performance. Case-study evidence from large firms in the Slovak Republic presented by Djankov & Pohl (1998) indicated that rapid consolidation of outside ownership promoted enterprise restructuring after the initial privatisation stage.…”

“…In particular, there is a disagreement about the effects of new ownership structures on the extent and speed of enterprise restructuring. For example, managerial ownership has been found to have both positive (e.g., Aukutsionek et al, 1998;Filatotchev et al, 2000) and negative (e.g., Aghion & Blanchard, 1998;Blasi et al, 1997) effects on the likelihood of restructuring actions. Similarly, existing research on postprivatisation restructuring has identified ambiguity in the role of outside ownership.…”