The Financial Performance of Privatised Firms: Evidence from Three Transition Economies

36 Pages Posted: 17 Jun 2001

See all articles by Ranko Jelic

Ranko Jelic

University of Sussex Business School

Richard Briston

University of Hull - Department of Accounting

Wolfgang Aussenegg

Vienna University of Technology

Date Written: June 2001

Abstract

There is a gap between the theoretical literature which almost unanimously advo-cates privatisation of enterprises, as a part of the solution for the commitment prob-lem in economies in transition, and empirical evidence on how best to design a pri-vatisation programme in order to secure an efficient use of resources. This paper contributes to this debate by focusing on the determinants of financial performance of privatised firms in Poland, Hungary, and the Czech Republic. Our results suggest positive long-term returns for foreign investors in newly privatised companies. The returns are particularly high and statistically significant for investors in Polish com-panies. The long-term performance is influenced by firms? size, retained state own-ership, and the choice of a privatisation method.

JEL Classification: JEL: G32, P34, P52

Suggested Citation

Jelic, Ranko and Briston, Richard and Aussenegg, Wolfgang, The Financial Performance of Privatised Firms: Evidence from Three Transition Economies (June 2001). Available at SSRN: https://ssrn.com/abstract=273875 or http://dx.doi.org/10.2139/ssrn.273875

Ranko Jelic (Contact Author)

University of Sussex Business School ( email )

Falmer, Brighton BN1 9SL
United Kingdom
+441273872597 (Phone)

Richard Briston

University of Hull - Department of Accounting ( email )

Filey Road
Scarborough YO11 3AZ
United Kingdom
44 0 1482 46621 (Phone)
44 0 1482 466377 (Fax)

Wolfgang Aussenegg

Vienna University of Technology ( email )

Theresianumgasse 27
Vienna, A-1040
Austria
+43 1 58801 33082 (Phone)
+43 1 58801 33098 (Fax)

HOME PAGE: http://www.imw.tuwien.ac.at/fc/people/wolfgang_aussenegg/

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