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Privileged Interfirm/Bank Relationships in Central Europe: Trigger or Trap for Corporate Governance?

32 Pages Posted: 6 Sep 2009 Last revised: 10 Feb 2011

Peter R. Haiss

WU Vienna University of Economics and Business; UniCredit Bank Austria; IES Vienna - Institute for the International Education of Students

Lucjan T. Orlowski

Sacred Heart University - John F. Welch College of Business

Dominick Salvatore

Fordham University - Department of Economics

Gerhard Fink

IACCM International Association for Cross Cultural Competence and Management

Multiple version iconThere are 2 versions of this paper

Date Written: 1999

Abstract

The paper focuses on the question whether banks and capital markets in Central Europe are capable of exerting a positive influence on enterprise performance at the present stage of the economic transformation. These markets are characterised by privileged, collaborative interfirm/interbank relationships demonstrated through various channels. Among them is the competition for private deposits between commercial and national banks that are simultaneously supervisors of commercial banks, as is the case in Poland. Other channels include: heavily indebted large banks that are owners of industrial companies (as is the case in Slovakia with the steel mill VSZ owning the third largest bank IRB), investment funds that are facilitating industrial restructuring, and foreign banks holding only minority stakes in large domestic financial institutions.

Keywords: Interfirm, bank relationship, Central Europe

JEL Classification: P34, O16, G21, G34

Suggested Citation

Haiss, Peter R. and Orlowski, Lucjan T. and Salvatore, Dominick and Fink, Gerhard, Privileged Interfirm/Bank Relationships in Central Europe: Trigger or Trap for Corporate Governance? (1999). CASE Network Studies and Analyses No. 170. Available at SSRN: https://ssrn.com/abstract=1467490 or http://dx.doi.org/10.2139/ssrn.1467490

Peter R. Haiss

WU Vienna University of Economics and Business ( email )

Institute for Export Management
Welthandelsplatz 1
Vienna, A-1020
Austria
++43-664 812 29 90 (Phone)
++43-50505 8944214 (Fax)

UniCredit Bank Austria ( email )

Schottengasse 6-8
Vienna, A-1010
Austria
++43-(0)50505 44214 (Phone)
++43-(0)50505 89 44214 (Fax)

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

IES Vienna - Institute for the International Education of Students

Johannesgasse 7
Vienna, A-1010
Austria

Lucjan T. Orlowski

Sacred Heart University - John F. Welch College of Business ( email )

5151 Park Avenue
Fairfield, CT 06825
United States
203-371-7858 (Phone)

HOME PAGE: http://www.sacredheart.edu/ltorlowski.cfm

Dominick Salvatore

Fordham University - Department of Economics ( email )

Bronx, NY 10458
United States

Gerhard Fink (Contact Author)

IACCM International Association for Cross Cultural Competence and Management ( email )

IACCM c/o IVM WU-Wien
Welthandelsplatz 1, Building D2
Wien, 1020
Austria
+43/1/313364553 (Phone)
+43/1/3133690724 (Fax)

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