Enterprise Restructuring in Transition: A Quantitative Survey

Djankov, Simeon; Murrell, Peter

doi:10.1257/002205102760273788

Cited by 592 publications

(461 citation statements)

References 152 publications

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“…This was especially the case for city-forming enterprises that bore substantial responsibilities for the day-to-day wellbeing of their employees by providing company housing, health care, catering, day care, and holiday recreation 12, 13, 14. When these enterprises were privatised, such provisions ceased.…”

Section: Introductionmentioning

confidence: 99%

The effect of rapid privatisation on mortality in mono-industrial towns in post-Soviet Russia: a retrospective cohort study

Azarova

Irdam

Gugushvili

et al. 2017

The Lancet Public Health

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SummaryBackgroundPopulation-level data suggest that economic disruptions in the early 1990s increased working-age male mortality in post-Soviet countries. This study uses individual-level data, using an indirect estimation method, to test the hypothesis that fast privatisation increased mortality in Russia.MethodsIn this retrospective cohort study, we surveyed surviving relatives of individuals who lived through the post-communist transition to retrieve demographic and socioeconomic characteristics of their parents, siblings, and male partners. The survey was done within the framework of the European Research Council (ERC) project PrivMort (The Impact of Privatization on the Mortality Crisis in Eastern Europe). We surveyed relatives in 20 mono-industrial towns in the European part of Russia (ie, the landmass to the west of the Urals). We compared ten fast-privatised and ten slow-privatised towns selected using propensity score matching. In the selected towns, population surveys were done in which respondents provided information about vital status, sociodemographic and socioeconomic characteristics and health-related behaviours of their parents, two eldest siblings (if eligible), and first husbands or long-term partners. We calculated indirect age-standardised mortality rates in fast and slow privatised towns and then, in multivariate analyses, calculated Poisson proportional incidence rate ratios to estimate the effect of rapid privatisation on all-cause mortality risk.FindingsBetween November, 2014, and March, 2015, 21 494 households were identified in 20 towns. Overall, 13 932 valid interviews were done (with information collected for 38 339 relatives [21 634 men and 16 705 women]). Fast privatisation was strongly associated with higher working-age male mortality rates both between 1992 and 1998 (age-standardised mortality ratio in men aged 20–69 years in fast vs slow privatised towns: 1·13, SMR 0·83, 95% CI 0·77–0·88 vs 0·73, 0·69–0·77, respectively) and from 1999 to 2006 (1·15, 0·91, 0·86–0·97 vs 0·79, 0·75–0·84). After adjusting for age, marital status, material deprivation history, smoking, drinking and socioeconomic status, working-age men in fast-privatised towns experienced 13% higher mortality than in slow-privatised towns (95% CI 1–26).InterpretationThe rapid pace of privatisation was a significant factor in the marked increase in working-age male mortality in post-Soviet Russia. By providing compelling evidence in support of the health benefits of a slower pace of privatisation, this study can assist policy makers in making informed decisions about the speed and scope of government interventions.FundingThe European Research Council.

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Section: Introductionmentioning

confidence: 99%

The effect of rapid privatisation on mortality in mono-industrial towns in post-Soviet Russia: a retrospective cohort study

Azarova

Irdam

Gugushvili

et al. 2017

The Lancet Public Health

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“…A wide variety of methods of privatization were implemented across the region and a large body of empirical evidence has accumulated from tests of the effects of privatization on enterprise performance. Hanousek et al (2007) summarize the results from the past fifteen years, which range from the agnostic (e.g., Bevan et al, 1999, report a wide variety of results with no systematic impact of privatization on performance), through the mildly positive findings of Megginson and Netter (2001) from an assessment of studies of privatization across the world, to the firmer conclusion of Shirley and Walsh (2000) and Djankov and Murrell (2002) that privatization has a positive effect on performance. Hanousek et al point to three key problems with the studies of privatization effects in transition: the evaluation of short-run effects only, variable data quality, and the unsystematic treatment or neglect of selection and associated endogeneity problems due to the design of privatization programmes in which enterprises of different quality were treated differently.…”

Section: Security Of Property Rights and The Role Of Foreign Owners Imentioning

confidence: 99%

Institutions and Economic Reforms

Carlin

2010

REI

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Recent studies in economic development seek to establish that institutional quality is an important determinant of long-run living standards. Moreover, it appears that property rights institutions are causal for development whereas contracting institutions affect the nature of financial intermediation in the economy. I use these results to explore two questions. If property rights institutions matter for economic growth, can they help explain large-scale reform surprises? The reforms in Western Germany in 1948 are viewed as 'miraculous' whereas those in the early 1990s in the former Soviet transition economies are viewed as disappointing. I argue that the former had a limited task because they only had to restore existing property rights institutions whereas the latter had to create new ones and find new owners for assets. The second question is whether the persistence of variety in contracting institutions across countries that have developed successfully has implications for the design of financial and corporate governance reforms.JEL classification: P11, P14, P21

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“…However, it can be argued that privatized firms are generally large, well known firms, thus information asymmetry does not seem important in this context. Second, literature on privatization (Megginson, Nash & van Randenborgh, 1994;Boubakri & Cosset, 1998;Megginson & Netter, 2001;Djankov & Murrell, 2002) shows that privatized firms exhibit significant increases in profitability among other performance indicators. This evidence is in contrast with the findings for private IPOs which have been shown (Jain and Kini (1994) to exhibit a decline in their post-issue operating performance, leading to more negative perceptions by investors.…”

Section: Background and Hypothesis Developmentmentioning

confidence: 99%

Investor Pessimism and Post-Issue Outperformance: Evidence from Privatized Firms

Bouslimi

2013

IJEF

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Using a unique sample of privatized firms over the period 1980 and 2002, we explore how the policy risk which is a distinctive feature of privatization is perceived by investors and whether the post issue outperformance of these firms is associated to investor pessimism. We find evidence that market-adjusted abnormal returns are negatively related to analysts forecast errors used as a proxy for investor expectations. This result suggests that contrary to traditional private firms investors seem to be pessimistic in their forecasts of privatized firms' earnings projections in the beginning of the privatization procedure. However, they are more confident in the prospects of these firms over time consistent with the positive performance we find after privatization.

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Enterprise Restructuring in Transition: A Quantitative Survey

Cited by 592 publications

References 152 publications

The effect of rapid privatisation on mortality in mono-industrial towns in post-Soviet Russia: a retrospective cohort study

The effect of rapid privatisation on mortality in mono-industrial towns in post-Soviet Russia: a retrospective cohort study

Institutions and Economic Reforms

Investor Pessimism and Post-Issue Outperformance: Evidence from Privatized Firms

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