Ownership Concentration and Corporate Performance in the Czech Republic
CEPR Discussion Paper No. 2145
Posted: 29 Aug 1999
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: Suggested Citation