Ownership concentration, institutional development and firm performance in Central and Eastern Europe

Arbeitspapier

This paper analyzes the relationship of ownership concentration and firm performance in the context of different institutional environments in 28 Central and Eastern European transition economies. Using the BEEPS data for the period from 2002 to 2009 we find an inverted u-shaped relation of ownership concentration and firm performance for those firms that operate in non-EU-member countries as well as those firms that are situated in less developed legal systems according to Freedom House ratings. We interpret these findings as evidence for a classic agency problem in the lower part of the ownership concentration distribution that is dominated by a 'private benefits of control' problem with rising ownership concentration.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 10-096

Classification and Topics

• Classification: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Firm Performance: Size, Diversification, and Scope ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Socialist Enterprises and Their Transitions
• Subject: corporate governance ; firm growth ; transition economies ; ownership concentration ; Corporate Governance ; Eigentümerstruktur ; Unternehmensentwicklung ; Übergangswirtschaft ; Institutionelle Infrastruktur ; Rechtsstaat ; Vergleich ; Osteuropa ; EU-Staaten (Osteuropa)

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Balsmeier, Benjamin ; Czarnitzki, Dirk
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/43677
• Last update: 10.03.2025, 11:43 AM CET