Managerial discretion, firm performance, and CEOs’ support for privatisation of state-owned companies

The objective of this paper is to shed light on the antecedents of managerial support for privatisation of State-Owned Enterprises (SOEs). The results of the study, based on 134 Polish SOEs, reveal that managerial autonomy (conceptualized as the extent to which CEOs are free from stakeholder pressur...

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Bibliographic Details
Published in:Journal for East European management studies 2018-01, Vol.23 (1), p.106-127
Main Authors: Postuła, Igor, Wąsowska, Aleksandra
Format: Article
Language:English
Subjects:
Autonomy
Chief executive officers
Chief executives
Corporate governance
Decision making
Financial performance
Hypotheses
Ideology
Organization theory
Organizational performance
Politics
Privatization
Public enterprise
Public interest
Resistance
Stockholders
Strategic management
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Summary:The objective of this paper is to shed light on the antecedents of managerial support for privatisation of State-Owned Enterprises (SOEs). The results of the study, based on 134 Polish SOEs, reveal that managerial autonomy (conceptualized as the extent to which CEOs are free from stakeholder pressure) is negatively related to CEOs’ support for privatisation. Moreover, firm performance has an indirect impact on CEOs’ support for privatisation, that is, it enhances CEOs’ positive attitude towards state control, which, in turn, negatively relates to CEOs’ support for privatisation. The study brings important theoretical and practical implications, indicating that privatisation efforts may meet with strong resistance from managers who enjoy a high level of discretion in SOEs.
ISSN:0949-6181
1862-0019
DOI:10.5771/0949-6181-2018-1-106