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Asset stripping and firm survival in mass privatization: testing the Hoff-Stiglitz and Campos-Giovannoni models in Montenegro

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    SYSNO ASEP0441134
    Document TypeJ - Journal Article
    R&D Document TypeJournal Article
    Subsidiary JČlánek ve WOS
    TitleAsset stripping and firm survival in mass privatization: testing the Hoff-Stiglitz and Campos-Giovannoni models in Montenegro
    Author(s) Koman, M. (SI)
    Lakićević, M. (ME)
    Prašnikar, J. (SI)
    Švejnar, Jan (NHU-N) RID
    Source TitleJournal of Comparative Economics. - : Elsevier - ISSN 0147-5967
    Roč. 43, č. 2 (2015), s. 274-289
    Number of pages16 s.
    Publication formPrint - P
    Languageeng - English
    CountryUS - United States
    Keywordsasset stripping ; mass privatization ; firm survival
    Subject RIVAH - Economics
    R&D ProjectsGA15-24642S GA ČR - Czech Science Foundation (CSF)
    Institutional supportNHU-N - RVO:67985998
    UT WOS000355056200003
    EID SCOPUS84928427865
    DOI https://doi.org/10.1016/j.jce.2014.10.006
    AnnotationWe provide the first test of and find support for the Hoff and Stiglitz, 2004a and Hoff and Stiglitz, 2004b model predicting under what conditions mass privatizations are accompanied by asset stripping. We also test and do not find support for the main prediction of the Campos and Giovannoni (2006) model. In addition to testing the theory, we tackle an important policy-oriented issue of why a large number of efficient firms disappeared during mass privatization in the booming economy of Montenegro. Econometrically, we present the first study to look at firms that disappeared during a mass privatization transition, improving upon prior studies that focused only on existing firms and ignored survival bias. Our analysis suggests that asset stripping and firm disappearance were present, and that asset stripping was a likely reason for the loss of efficient firms. We show that because more productive firms were liquidated, it is important to model survival bias in the selection of firms remaining in samples when estimating the effects of privatization or other ownership changes.
    WorkplaceEconomics Institute
    ContactTomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122
    Year of Publishing2016
Number of the records: 1  

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