Not Available for Download

Ownership Changes and Access to External Financing

Posted: 23 Jul 2008 Last revised: 30 Aug 2011

Anzhela Knyazeva

U.S. Securities and Exchange Commission

Diana Knyazeva

U.S. Securities and Exchange Commission (SEC)

Joseph E. Stiglitz

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Date Written: December 29, 2008

Abstract

This paper examines access to external financing in the privatization context and provides new evidence on the effects of financing constraints on performance and investment. Ownership reforms increase firms’ reliance on external financing. Empirically, performance and investment changes around ownership reforms are increasing in country-level measures of access to credit. The presence of a severe prior public financing constraint contributes to stronger investment growth after privatization. Privatized enterprises do not outperform publicly owned industries, all else given. Our analyses rely on new international sector- and firm-level data and correct for potential endogeneity of ownership changes.

Keywords: Privatization, Ownership, Access to credit, Performance, Investment

JEL Classification: G38, G31, L33

Suggested Citation

Knyazeva, Anzhela and Knyazeva, Diana and Stiglitz, Joseph E., Ownership Changes and Access to External Financing (December 29, 2008). Journal of Banking and Finance, Vol. 33, No. 10, pp. 1804-1816, 2009. Available at SSRN: https://ssrn.com/abstract=1170543

Anzhela Knyazeva (Contact Author)

U.S. Securities and Exchange Commission ( email )

United States

Diana Knyazeva

U.S. Securities and Exchange Commission (SEC) ( email )

100 F Street NE
Washington, DC 20549-1105
United States
(202) 551-7989 (Phone)

Joseph E. Stiglitz

Columbia Business School - Finance and Economics ( email )

3022 Broadway
814 Uris Hall
New York, NY 10027
United States
(212) 854-0671 (Phone)
(212) 662-8474 (Fax)

HOME PAGE: http://www.josephstiglitz.com

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Paper statistics

Abstract Views
890