Short-Term Effects of Privatization on Operating Performance in the Czech Republic

Posted: 3 Jul 2000

See all articles by Joel T. Harper

Joel T. Harper

Miami University of Ohio - Department of Finance

Abstract

In this paper I use a sample of 178 Czech firms that were in the first wave of voucher privatization to test changes in efficiency and profitability. Based on a previous study's methodology, nonparametric tests reveal that efficiency and profitability decreased immediately after privatization. This is in contrast to earlier studies that find privatization increases these measures. Changes in firms' operations do not vary significantly by size or ownership but do vary by industry type, with nonmanufacturing firms having more positive (or less negative) changes after privatization. Evidence indicates that in spite of the disappointing findings, positive operating performance changes are taking place, such as a decrease in employment.

JEL Classification: G18, G32

Suggested Citation

Harper, Joel T., Short-Term Effects of Privatization on Operating Performance in the Czech Republic. Available at SSRN: https://ssrn.com/abstract=207108

Joel T. Harper (Contact Author)

Miami University of Ohio - Department of Finance ( email )

Oxford, OH 45056
United States

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