Shareholding Structure and Value Creation in Central Eastern Europe

34 Pages Posted: 23 Nov 2020

See all articles by Péter Harbula

Péter Harbula


Adam Kerekes

affiliation not provided to SSRN

Date Written: October 4, 2020


This article aims to analyze the interaction between shareholding structure and value creation in the transition economies of Central Eastern Europe. Our study set out to verify several assumptions on the relationship between ownership and performance in Central Eastern Europe.

Using a data sample of listed companies over a period of 20 years, we analyze the value creation as measured by the share price versus a cross section analysis of return against multiple factors, including but not limited to shareholding structures. We use exclusively listed in the regional stock exchanges and analyze this with the specific ownership structure that resulted in such transition economies.

We have found that a major, private shareholder led companies and diffused ownership companies significantly outperform the sample average whether in terms of total shareholder returns or other metrics. We have also observed that state led companies underperform peers with another shareholding structure or the sample average. More generically, whenever the State plays a significant role in the shareholding structure (which we consider a proxy for a direct or indirect management role or influence), the performance seems to be below that sample average.

Keywords: Value Creation, Corporate Governance, CEE, Shareholding Structure, State Owned Firms

JEL Classification: G32, G34

Suggested Citation

Harbula, Péter and Kerekes, Adam, Shareholding Structure and Value Creation in Central Eastern Europe (October 4, 2020). Available at SSRN: or

Adam Kerekes

affiliation not provided to SSRN

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