Potential of the state to control privatized firms

The privatization strategy in many transition economies involved the creation of a special government agency that administered state property during privatization programs as well as after the privatization was declared complete. The National Property Fund (NPF) was the agency in the Czech Republic....

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Bibliographic Details
Published in:Economic change and restructuring 2008-06, Vol.41 (2), p.167-186
Main Authors: Hanousek, Jan, Kočenda, Evžen
Format: Article
Language:English
Subjects:
Czech Republic
Development Economics
Economic Growth
Economic Policy
Economics
Economics and Finance
Enterprises
Golden share
Government agencies
Government sponsored enterprises
International Economics
Macroeconomics/Monetary Economics//Financial Economics
Political Economy/Economic Systems
Privatization
Right to vote
Social control
State
State control potential
States
Statistical analysis
Strategic firms
Transition economies
Voting behaviour
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Summary:The privatization strategy in many transition economies involved the creation of a special government agency that administered state property during privatization programs as well as after the privatization was declared complete. The National Property Fund (NPF) was the agency in the Czech Republic. In many firms the state kept property long after the privatization was completed. We analyze the control potential of the state exercised through the NPF via the control rights associated with capital stakes in firms along with special voting rights provided by law. Based on a complete data set on assets as well as the means of control in privatized firms we conclude that for most of the 1994–2005 period, the state control potential was extensive and certainly larger than has been found by earlier research.
ISSN:1573-9414
1574-0277
DOI:10.1007/s10644-008-9047-3