Content uploaded by Mark E. Schaffer
Author content
All content in this area was uploaded by Mark E. Schaffer
Content may be subject to copyright.
A preview of the PDF is not available
The Determinants of Privatised Enterprise Performance in Russia
Abstract
The transition process that started in the Balkans some twenty years ago, and the European association process to which it has been inexorably connected, has led to a radical transformation of the Balkan economic space across local, regional, national and trans-national levels. Amongst the other effects that this have had, was the emergence of new and acute socio-economic dichotomies (polarisation) and problems of persistent underdevelopment, peripherality-rurality and economic dependence. In this paper we review the policies that have been applied to address these issues and examine the relevance of contemporary concepts of local economic development for the mobilisation of cohesive and sustainable development in the Balkans. We examine how the main elements of the new regionalist developmental strategy relate to the basic dimensions of socio-spatial infrastructure in the Balkans and identify the key weaknesses of the latter. We conclude by proposing a wider regional strategy that will be able to r solve the existing deficiencies by means of a regional cooperation approach that will seek to maximise intra-regional synergies and develop local and regional comparative advantages and the provision of similar public goods.
... Since the late 1990s, however, a group of researchers, such as Blasi and Shleifer (1996), Wright et al. (1998), and Filatotchev et al. (1999a, 1999b, have published a number of articles in which they addressed the size and composition of boards of directors. From the same viewpoint, some notable research articles also published in the 2000s include those by Bevan et al. (2001), Judge et al. (2003), and Peng et al. (2003). The latest studies on listed companies are represented by Muravyev et al. (2014) and the aforementioned Muravyev (2017). ...
Using a unique firm-level dataset obtained from a large-scale questionnaire survey conducted in late 2015, we examined the generality and heterogeneity of corporate governance systems between the eastern and western regions of Russia. The survey results strongly suggest that the governance system in the surveyed firms is generally characterized by: the dominance of closed corporate forms, the polarization trend in boards of directors and audit committees in terms of their independence from senior management, the reluctance to employ independent directors or expert auditors, and the strong preference for local auditors and indigenous audit firms as external auditors. At the same time, however, we also found that the probability of establishment of the governance bodies, appointment of independent directors and expert auditors, and execution of external audit in the eastern companies is significantly lower than that in the western counterparts. This finding is robust, even after a series of firm-level attributes are simultaneously controlled for.
... Since the late 1990s, however, a group of researchers, such as Blasi and Shleifer (1996), Wright et al. (1998), and Filatotchev et al. (1999a, 1999b, have published a number of articles in which they addressed the size and composition of boards of directors. From the same viewpoint, some notable research articles also published in the 2000s include those by Bevan et al. (2001), Judge et al. (2003), and Peng et al. (2003). The latest studies on listed companies are represented by Muravyev et al. (2014) and the aforementioned Muravyev (2017). ...
This paper aims to perform a large-scale meta-analysis to examine the relationship between ownership concentration and firm performance in emerging economies of Central and Eastern Europe and the former Soviet Union. A meta-synthesis of 1517 estimates collected from 69 previous studies indicated the presence of a statistically significant and positive effect of ownership concentration on firm performance. The synthesized effect size, however, is only modest at best. A meta-regression analysis conducted to identify the factors underlying the small effect size revealed that differences in target industries, estimation periods, design of ownership variables, data sources, estimators, and choices of control variables could have had systematic and profound effects on the empirical results presented in previous studies. We have also noted that publication selection bias is strongly suspected in this research field, and that, due to the magnitude of this bias, existing studies cannot be expected to provide genuine evidence regarding the effect of ownership concentration on firm performance in European emerging economies. Further empirical studies are required to identify the true effect in this region.
This paper aims to perform a large-scale meta-analysis to examine the relationship between ownership concentration and firm performance in emerging economies of Central and Eastern Europe and the former Soviet Union. A meta-synthesis of 1517 estimates collected from 69 previous studies indicated the presence of a statistically significant and positive effect of ownership concentration on firm performance. The synthesized effect size, however, is only modest at best. A meta-regression analysis conducted to identify the factors underlying the small effect size revealed that differences in target industries, estimation periods, design of ownership variables, data sources, estimators, and choices of control variables could have had systematic and profound effects on the empirical results presented in previous studies. We have also noted that publication selection bias is strongly suspected in this research field, and that, due to the magnitude of this bias, existing studies cannot be expected to provide genuine evidence regarding the effect of ownership concentration on firm performance in European emerging economies. Further empirical studies are required to identify the true effect in this region.
This paper aims to perform a large-scale meta-analysis of the relationship between post-privatization ownership and firm performance in Central and Eastern Europe and the former Soviet Union. Baseline estimation of a meta-regression model that employs a total of 2,894 estimates drawn from 121 previous studies indicated the superior impact of foreign ownership on firm performance in comparison with state and domestic private entities. Furthermore, the estimation of an extended meta-regression model that explicitly controls for the idiosyncrasies of transition economies and privatization policies strongly suggested that differences between countries in location, privatization method, and speed of policy implementation strongly influence the link between post-privatization ownership structure and firm performance. We also found that these factors not only cause a remarkable gap between countries in terms of ex post improvement in firm performance but also significantly affect the interrelationship between foreign investors, domestic outsider owners, and firm managers, and the relative superiority of various domestic outsiders. Conclusive evidence of the harm caused to ex post firm performance by voucher privatization is one of the most noteworthy empirical findings in this paper.
EXECUTIVE SUMMARY The purpose of this research is the analysis of multinational corporations' (MNCs) strategies in Central and Eastern Europe (CEE). The region is currently going thru a process of change from planned to market-based economy and institutions that is characterized by a high level of complexity. The research analyzes the patterns of adaptation of multinationals' subsidiaries to this complex environment and presents a comprehensive outline and discussion of successful approaches and strategic limitations. The context of transition is evaluated thru the analysis of initial conditions, internal structures and factors determining the evolution towards market, and, finally, external forces influencing transition outcomes. The companies' responses to the environment are classified as complexity absorption strategies and complexity reduction strategies. The findings suggest that winners evolve and develop not only as environmental forces allow them, but also thru their own products and ideas. Successful companies have a strong strategic theme, 'a simple rules logic', are flexible and quick. Unsuccessful companies have two or more weak strategic themes at entry and develop new ones locally. They follow a 'problem solving logic', learn little from the past and are slow to anticipate the future. The contribution to the field consists of a comprehensive evaluation of MNCs strategies in the transition environments of CEE, with the discovery of patterns of successful adaptation. The study builds an integrative theoretical framework that treats organizations as interpretative and learning systems with vast applicability for research as well as pragmatic approaches to strategy.
Using survey data for 220 traditional manufacturing firms over 7 years of transition and 4 Central Eastern Europe (CEE) countries, we find firms that produced for the EU market under planning consistently outperform those that produced for the CMEA market. Within the previously CMEA market, the best firms were selected to outside privatisation and outperformed insider/state owned firms. Outside privatisation was resisted in EU oriented firms and ownership was found to have no effect on performance. Path dependent demand shocks and political constraints on the sequencing of state firms to private ownership determine the relationship between firm performance and ownership structure during transition.
In this volume, the output of a joint project of the Commission of the European Communities and the Centre for Economic Policy Research, leading economists from the former CSFR, Hungary and Poland assess these countries' progress in economic transformation since the revolutions of 1989 and the prospects for their continued growth and integration into the world economy. They also evaluate the economic, social and political implications of the alternative policy proposals currently under discussion in these countries. In an overview chapter, two economists from the Community sum up the analysis of the individual countries, draw lessons from their experience, and set out specific policy guidelines. This book provides an up-to-date assessment of Central Europe's difficult but ultimately positive and rewarding process of economic transformation, in which the European Community has so great a stake. This should command the attention of both policy-makers and analysts.
Estrin, Saul, and Wright, Mike—Corporate Governance in the Former Soviet Union: An Overview This paper seeks to identify whether the slow progress in transition experienced by the countries of the former Soviet Union (FSU) arises from weaknesses in implementing effective corporate governance or from weaknesses in the broader economic environment. An overview of progress in transition in the FSU is presented followed by analysis of developments in enterprise ownership and governance. Problems in measuring the link between governance and performance and alternative mechanisms for enhancing the efficiency of enterprise in the FSU are discussed. The paper concludes that the problems of transition in the FSU concern delays both in introducing corporate governance mech- anisms and in introducing an appropriate competitive market environment. J. Comp. Econom., September 1999, 27(3), pp. 398 - 421. London Business School, Sussex Place, Regent's Park, London NW1 4SA, United Kingdom; and Centre for Management Buy- Out Research, University of Nottingham Business School, Nottingham NG7 2RD, United Kingdom. © 1999 Academic Press
This paper analyses the incidence and growth of non-monetary transactions - barter, veksels, debt offsets, tax offsets and other money surrogates - in Russia. The empirical backbone of the paper is a survey of 350 - predominantly industrial - firms, carried out in October and November 1998. The paper provides an analytical framework for understanding both firm-level incentives for using barter and the reasons for its phenomenal growth since 1993. Having examined some of the costs of Russia's non- monetary economy, the paper discusses a number of policy options.
In this paper we analyse the determinants of the capital structure for a panel of 1,054 listed UK companies from 1991 to 1997, giving a total of 6,001 firm-year observations. We find significant differences in the results depending on whether the estimation is undertaken using OLS or panel estimation, suggesting OLS results are inconsistent due to their failure to take into account firm effects. We extend the fixed effects panel estimation by incorporating time interactions with the intercept and each of the independent variables. Analysis of the dynamics in the panel reveals significant changes over time in the relationship between gearing and the level of growth opportunities, company size, profitability and tangibility. Over the period of analysis, there is a trend for larger companies to use more long-term securitised debt, with smaller companies making increasing use of long-term bank borrowing and trade credit. Companies with high levels of growth opportunities are in general reducing their level of indebtedness, particularly at short maturities. During the early years of the analysis, there is a strong negative relationship between gearing and profitability. However, there appears to be a significant shift during the 1990s, with short-term bank borrowing and trade credit becoming significantly positively related to profitability by the mid 1990s. Our results suggest the nature of the credit market in the UK has changed significantly during the 1990s.
This paper begins from the proposition that 'deep restructuring' requires both finance and managerial expertise. It addresses the question of how this second stage of enterprise restructuring will come about in the majority of state-owned or former state-owned firms that are not owned by foreigners. In particular, it seeks to identify how the initial post-privatization ownership and control structure impinges on the likelihood that deep restructuring takes place. Conclusions for the design of privatization policy are drawn. The initial post-privatization ownership structures in the Visegrad countries and Russia are surveyed along with evidence of the transfer of ownership from insiders to outsiders. Copyright 1996 The European Bank for Reconstruction and Development.
Incl. app., index, bibliographical notes and references, list of acronyms
This paper begins from the proposition that 'deep restructuring' requires both finance and managerial expertise. It addresses the question of how this second stage of enterprise restructuring will come about in the majority of state-owned or former state-owned firms that are not owned by foreigners. In particular, it seeks to identify how the initial post-privatization ownership and control structure impinges on the likelihood that deep restructuring takes place. Conclusions for the design of privatization policy are drawn. The initial post-privatization ownership structures in the Visegrad countries and Russia are surveyed along with evidence of the transfer of ownership from insiders to outsiders.