Politická ekonomie 2006, 54(4):467-489 | DOI: 10.18267/j.polek.569

Rozdělení, privatizace podniků a jejich výkonnost

Jan Hanousek, Evľen Kočenda, Jan ©vejnar
1 CERGE, Univerzita Karlova, Praha; Národohospodářský ústav AV ČR, Praha.
2 University of Michigan, Ann Arbor.

Breakups, privatization and firms" performance

This paper uses new firm-level data to examine the effects of breakups of the Czech firms and their subsequent privatization on corporate performance. Unlike the existing literature, which analyzes breakups almost exclusively in advanced economies, we control for accompanying ownership changes and the fact that spinoffs and ownership are endogenous variables. We find that breakups increase the firm's profitability but do not alter its scale of operations, while the effect of privatization depends on the resulting ownership structure - sometime improving performance and sometime bringing about decline. The effects of privatization are hence less clear-cut than suggested in earlier studies. Methodologically, our study provides evidence that it is important to control for changes in ownership when analyzing divestitures and control for endogeneity, selection and data attrition when analyzing the effects of breakups and privatization.

Keywords: privatization, breakups, corporate performance, endogeneity, firms? division
JEL classification: D23, G32, G34, L20, M21, P47

Published: August 1, 2006  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Hanousek, J., Kočenda, E., & ©vejnar, J. (2006). Breakups, privatization and firms" performance. Politická ekonomie, 54(4), 467-489. doi: 10.18267/j.polek.569
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Ahn, S., Denis, D.J.: Internal Capital Markets and Investment Policy: Evidence from Corporate Spinoffs. Journal of Financial Economics, 2004, roč. 71, č. 3, s. 479-516. Go to original source...
    2. Coffee, J.: Institutional Investors in Transitional Economies: Lessons from the Czech Experience. In: Frydman, R., Gray, C., Rapaczynski, A. (eds.): Corporate governance in Central Europe and Russia. Volume 1. Banks, Funds, and Foreign Investors. Budapest, CEU Press 1996, s. 111-86. Go to original source...
    3. Cusatis, P.J., Miles, J.A., Woolridge, R.J.: Restructuring through Spin-offs. Journal of Financial Economics, 1993, roč. 33, s. 293-311. Go to original source...
    4. Daley, L., Mehrotra, V., Sivakumar, R.: Corporate Focus and Value Creation: Evidence from Spin-offs.Journal of Financial Economics, 1997, roč. 45, s. 257-281. Go to original source...
    5. Desai, H., Jain, P.: Firm Performance and Focus: Long-run Stock Market Performance following Spin-offs. Journal of Financial Economics, 1999, roč. 54, s. 75-101. Go to original source...
    6. DeWenter, K.L., Malatesta, P.H.: State-Owned and Privately Owned Firms: An Empirical Analysis of Profitability, Leverage, and Labor Intensity. American Economic Review, 2001, roč. 91, č. 1, s. 320-34. Go to original source...
    7. Dittmar, A., Shivdasani, A.: Divestitures and Divisional Investment Policies.Journal of Finance. 2003, roč. 58, č. 6, s. 2711-2743. Go to original source...
    8. Djankov, S., Murrell, P.: Enterprise Restructuring in Transition: A Quantitative Survey. Journal of Economic Literature, 2002, roč.XL, s. 739-792. Go to original source...
    9. Filer, R.K., Hanousek, J.: Efficiency of Price Setting Based on a Simple Excess Demand Rule: The Natural Experiment of Czech Voucher Privatization. European Economic Review, 2001, roč. 45, č. 9, s.1619-1646. Go to original source...
    10. Focarelli, D., Panetta, F.: Are Mergers Beneficial to Consumers? Evidence from the Market for Bank Deposits. American Economic Review, 2003, roč. 93, č. 4, s. 1152-1172. Go to original source...
    11. Gertner, R., Powers, E., Scharfstein, D.: Learning about Internal Capital Markets from Corporate Spin-offs. Journal of Finance, 2002, roč. 57, č. 6, s. 2479-2506. Go to original source...
    12. Gupta, N., Ham, J., ©vejnar, J.: Priorities and Sequencing in Privatization: Theory and Empirical Evidence. William Davidson Institute Working Paper No. 416, University of Michigan Business School.
    13. Hanousek, J., KoČEnda, E., ©vejnar, J.: Origin and Concentration: Corporate Ownership, Control and Performance. CERGE-EI Working Paper No. 259, 2005. Go to original source...
    14. Hausman, J.: Specification Tests in Econometrics. Econometrica, 1978, roč. 46, č. 6, s. 1251-1271. Go to original source...
    15. Hausman, J., Tardiff, T., Belinfante, A.: The Effects of the Breakup of AT&T on Telephone Penetration in the United States. American Economic Review, 1993, roč. 83, č. 2, s. 178-184.
    16. Heckman, J.: Sample selection bias as a specification error. Econometrica, 1979, roč. 47, s. 153-161. Go to original source...
    17. Hite, G.L., Owers, J.E.: Security Price Reactions around Corporate Spin-off Announcements. Journal of Financial Economics, 1983, roč. 12, s. 409-436. Go to original source...
    18. Chemmanur, T.J., Yan, A.: A Theory of Corporate Spin-offs. Journal of Financial Economics, 2004, roč. 72, č. 2, s. 259-290. Go to original source...
    19. KoČEnda, E.: Residual State Property in the Czech Republic. Eastern European Economics, 1999, roč. 37, č. 5, s. 6-35. Go to original source...
    20. Kotrba, J.: Privatization Process in the Czech Republic: Players and Winners. In: ©vejnar, J.: The Czech Republic and Economic Transition in Eastern Europe. San Diego; London and Toronto, Harcourt Brace, Academic Press 1995, s. 159-198. Go to original source...
    21. Kotrba, J., ©vejnar, J.: Rapid and Multifaceted Privatization: Experience of the Czech and Slovak Republics. Nomisma/Most 1994, s. 147-185. Go to original source...
    22. Krishnaswami, S., Subramanian, V.: Information Asymmetry, Valuation, and the Corporate Spin-off Decision. Journal of Financial Economics, 1999, roč. 53, s. 73-112. Go to original source...
    23. Kumar, K.B., Rajan, R.G., Zingales, L.: What Determines Firm Size? NBER, Working Paper No. 7208, 1999. Go to original source...
    24. Lízal, L., Singer, M., ©vejnar, J.: Enterprise Break-ups and Performance During the Transition From Plan to Market. The Review of Economics and Statistics, 2001, roč. 83, č. 1, s. 92-99. Go to original source...
    25. Maxwell, W., Rao, R.: Do Spin-offs Expropriate Wealth from Bondholders? Journal of Finance, 2003, roč. 58, č. 5, s. 2087-2108. Go to original source...
    26. McConnell, J.J., Ozbilgin, M., Wahal, S.: Spin-Offs, Ex Ante. Journal of Business, 2001, roč. 74, č. 2, s. 245-280. Go to original source...
    27. Megginson, W., Netter, J.M.: From State to Market: A Survey of Empirical Studies on Privatization. Journal of Economic Literature, 2001, roč. 39, č. 2, s. 321-389. Go to original source...
    28. Miles, J., Rosenfeld, J.: An Empirical Analysis of the Effects of Spin-off Announcements on Shareholder Wealth. Journal of Finance, 1983, roč. 38, s. 1597-1606. Go to original source...
    29. Prahalad, C.K., Hamel, G.: The Core Competence of the Corporation. Harvard Business Review, 1990, č. 3, s. 79-91.
    30. Rosenfeld, J.D.: Additional Evidence on the Relation between Divestiture Announcements and Shareholder Wealth. Journal of Finance, 1984, roč. 39, s. 1437-1448. Go to original source...
    31. Schipper, K., Smith, K.: Effects of Recontracting on Shareholder Wealth: The case of Voluntary Spin-offs. Journal of Financial Economics, 1983, roč. 12, s. 437-467. Go to original source...
    32. ©vejnar, J., Singer, M.: Using Vouchers to Privatize an Economy: The Czech and Slovak Case. Economics of Transition, 1994, roč. 2, s. 43-64. Go to original source...
    33. Woo, C., Willard, G., Daellenbach, U.: Spin-off performance - A case of over stated expectations. Strategic Management Journal, 1992, roč. 13, s. 433-447. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content