Journal of Electrical and Electronics Engineering (May 2009)

Performance of IPFs after mass privatization process. Evidence from Russian and Czech mass privatization programs

  • Simona Aurelia Bodog,
  • Alexandru Constangioara,
  • Nicoleta Bugnar,
  • Liana Mester

Journal volume & issue
Vol. 2, no. 1
pp. 219 – 222


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IPFs were created to facilitate theownership concentration. Extensive literature pointsout that effective corporate governance needsownership concentration. Vishny and Shleifer (1986),Mc Connell and Servaes (1990), Vishny, Shleifer(1997) find a positive relation between ownershipconcentration and corporate performance in US. Theyall argue that diffuse ownership yields significantpower to managers, whose interests do not coincidewith shareholder’s interests. Consequently, managerscould purse non-value maximizing activities such asself dealing, quiet life or empire building. This paperexamines evidence on IPFs in transitional economiesof Czech Republic and Russia.