Foreign Acquisitions in Central and Eastern Europe: Outcomes of Privatization in Transitional Economies

Mergers and acquisitions in and out of emerging economies

“…Higher market development and more extensive knowledge base in a home country, however, increase the Meyer (2002), Roberts et al (2008), Uhlenbruck and De Castro (1998), Uhlenbruck and De Castro (2000), Zhu et al (2011) likelihood of exploratory (unrelated) M&As. Among other studies, Elango and Pattnaik (2011) show that firms from EE undertake serial acquisitions, increasing the value of the deals sequentially to learn and develop new capabilities.…”

Returns to acquirers of privatizing financial services firms: An international examination

“…Djankov (1999) also documents that foreign share ownership results in considerably improved performance for privatizations conducted in the former Soviet countries. As mentioned earlier, SOEs that are privatized through a purchase by a foreign firm perform better than other types of privatizing firms (Uhlenbruck and De Castro, 2000).…”

“…In their study of acquisitions of former state-owned enterprises (SOEs) in transition economies, Uhlenbruck and De Castro (2000) report that SOEs that are privatized through purchase by foreign firms (the method under consideration here) fare better than any other method of privatization. Such acquisitions require a prolonged and expensive commitment, and post-privatization performance is related to the strategic fit between the merging firms, as well as continued government involvement.…”

Can minority state ownership influence firm value? Universal and contingency views of its governance effects

“…Without information and the disciplining effects of market competition, the owner's ability to monitor the management weakens, and the conflict between the firm's commercial objectives and the government's social welfare objectives intensifies. Echoing Uhlenbruck and De Castro's (2000) "strife" view, which stresses unanticipated discord between two divided goals, this finding explains the value-constraining effect of MSO in the less competitive markets.…”