POST‐PRIVATIZATION OWNERSHIP AND FIRM PERFORMANCE: A LARGE META‐ANALYSIS OF THE TRANSITION LITERATURE |
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| Authors: | Ichiro IWASAKI Satoshi MIZOBATA |
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| Affiliation: | 1. Hitotsubashi University, Tokyo, JapanThis research work was financially supported by a Grant‐in‐Aid for scientific research from the Ministry of Education, Culture, Sports, Science and Technology of Japan (No. 26245034) and the Joint Usage and Research Center of the Institute of Economic Research, Kyoto University (FY2015–16). We would like to thank Masato Hiwatari, Shuichi Ikemoto, Robert J. Johnston, Ryo Kambayashi, Ev?en Ko?enda, Tom D. Stanley, two anonymous referees of the journal, and participants in the study meeting at the Institute of Economic Research, Hitotsubashi University, on 1 June 2016, and the Kyoto International Conference ‘Frontier of Transition Economics’ at the Campus Plaza Kyoto on 23–25 February 2017, for their helpful comments and suggestions. We also thank Eriko Yoshida for her research assistance and Dawn Brandon and Tammy Bicket for their editorial assistance. Finally, we wish to express our deepest respect to the authors of the literature subject to the meta‐analysis in this paper. The usual caveats apply. Email:;2. Kyoto University, Kyoto, Japan |
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| Abstract: | This paper aims to perform a large‐scale meta‐analysis of the relationship between post‐privatization ownership and firm performance in Central and Eastern Europe and the former Soviet Union. Baseline estimation of a meta‐regression model that employs a total of 2,894 estimates drawn from 121 previous studies indicated the superior impact of foreign ownership on firm performance in comparison with state and domestic private entities. Furthermore, the estimation of an extended meta‐regression model that explicitly controls for the idiosyncrasies of transition economies and privatization policies strongly suggested that differences between countries in location, privatization method, and speed of policy implementation strongly influence the link between post‐privatization ownership structure and firm performance. We also found that these factors not only cause a remarkable gap between countries in terms of ex post improvement in firm performance but also significantly affect the interrelationship between foreign investors, domestic outsider owners, and firm managers, and the relative superiority of various domestic outsiders. Conclusive evidence of the harm caused to ex post firm performance by voucher privatization is one of the most noteworthy empirical findings in this paper. |
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| Keywords: | Post‐privatization ownership firm performance transition economies meta‐analysis publication selection bias Central and Eastern Europe former Soviet Union D22 G32 G34 L25 P21 P31 |
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