Should State-Owned Firms Change CEOS Before Privatization? The Case of the Telecommunications Industry

14 Pages Posted: 25 Apr 2011

See all articles by Alberto Chong

Alberto Chong

University of Ottawa

Virgilio Galdo

Michigan State University - Economics

Date Written: February 2003

Abstract

Should state-owned enterprises change chief executive officer before privatizing? We test competing views on this question by complementing a recently released database with newly collected data. We are able to cover 77 telecommunications privatizations, which account for nearly 80 percent of the sector in terms of value. We find that CEO replacement will improve performance in the telecommunications industry before privatization as measured by penetration, operating efficiency, and profitability. CEO change before privatization does appear to have real consequences in firm performance before privatization. Moreover, findings are consistent with previous research that links CEO replacement and an increase in privatization prices

Suggested Citation

Chong, Alberto and Galdo, Virgilio, Should State-Owned Firms Change CEOS Before Privatization? The Case of the Telecommunications Industry (February 2003). IDB Working Paper No. 403, Available at SSRN: https://ssrn.com/abstract=1818692 or http://dx.doi.org/10.2139/ssrn.1818692

Alberto Chong (Contact Author)

University of Ottawa ( email )

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

Virgilio Galdo

Michigan State University - Economics ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States
517-203-8372 (Phone)

HOME PAGE: http://search.msu.edu/people/index.php?uid=488171&prev=Galdo,%20Virgilio

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