Derek C. Jones, the Irma M. and Robert D. Morris Professor of Economics, recently published an article titled "Choice of Ownership Structure and Firm Performance: Evidence from Estonia," with Panu Kalmi (Helsinki School of Economics) and Niels Mygind (Copenhagen Business School). It was published in Post-Communist Economies, Volume 17, Number 1 (March, 2005).
This article analyzes diverse issues related to the determinants of ownership structures and ownership changes after privatization in Estonia. The paper seeks to determine whether ownership changes are related to economic efficiency. The authors find that wealth and resource constraints play a crucial role in the determination of ownership, with foreigners buying firms with the highest equity levels and insiders buying firms with the lowest equity valuations. They also determined that risk aversion explains subsequent ownership changes, especially away from employee ownership, and that allocation of ownership depends on the pre-privatization origin and location of the firm, and these factors also influence subsequent ownership changes.
This article analyzes diverse issues related to the determinants of ownership structures and ownership changes after privatization in Estonia. The paper seeks to determine whether ownership changes are related to economic efficiency. The authors find that wealth and resource constraints play a crucial role in the determination of ownership, with foreigners buying firms with the highest equity levels and insiders buying firms with the lowest equity valuations. They also determined that risk aversion explains subsequent ownership changes, especially away from employee ownership, and that allocation of ownership depends on the pre-privatization origin and location of the firm, and these factors also influence subsequent ownership changes.
