Ownership Concentration and Corporate Performance in the Czech Republic

CEPR Discussion Paper No. 2145

Posted: 29 Aug 1999

See all articles by Stijn Claessens

Stijn Claessens

Bank for International Settlements (BIS)

Simeon Djankov

London School of Economics & Political Science (LSE); Peter G. Peterson Institute for International Economics

Abstract

The relationship between ownership structure and corporate performance has been the subject of intense research in both transition and market economies. The Czech Republic's mass privatization program provides a unique opportunity to investigate this relationship. It changed the ownership of firms in a short period of time, and firm characteristics had only a limited influence on the resulting ownership structure. Using a cross-section of 706 Czech firms over the period 1992-7, we find that the more concentrated ownership, the higher firm profitability and labour productivity. These findings are weakly robust to the inclusion of control variables for the type of ownership, or to a correction for the endogeneity of ownership concentration.

JEL Classification: G32, G34

Suggested Citation

Claessens, Stijn and Djankov, Simeon, Ownership Concentration and Corporate Performance in the Czech Republic. CEPR Discussion Paper No. 2145. Available at SSRN: https://ssrn.com/abstract=178608

Stijn Claessens (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Simeon Djankov

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

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