Naslov
Post-Privatization Ownership Structure, Restructuring and Corporate Governance: The Case of Croatia

Autori
Čučković, Nevenka

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Ten Years of Economic Transformation, Volume II- Markets, Companies and Foreign Business in Transition

Urednik/ci
Kari Liuhto

Izdavač
Lappeenranta-Lahti University of Technology (LUT)

Grad
Lappeenranta

Godina
2001

Raspon stranica
22-47

ISBN
951-764-570-8

Ključne riječi
Privatization, Post-Privatization Ownership, Restructuring, Efficiency, Corporate Governance

Sažetak
The paper is concerned with analysis of the effects of the implemented privatization policy on the formation of the dominant post-privatization ownership structures in Croatia and attempts to examine the significance of their impact on the restructuring, efficiency and the quality of corporate governance of privatized firms. The starting hypothesis of the text that is supported by the growing empirical evidence (Hansmann, 1996; Frydman et al., 1999) is that the new shareholding structures of privatized firms have profound implications both on corporate governance and market efficiency of those firms. Different post-privatization ownership structures (such as dispersed ownership, dominant outside owners, investment funds, insiders, banks, foreign investors etc) have different implications on corporate control, on corporate incentive mechanisms, and, consequently on the efficiency and likelihood of restructuring of privatized firms. The text brings analyses of the dominant owners that emerged after the privatization process in Croatia (i.e. insiders, pension funds, investment funds, banks, other firms, foreign investors etc) and examines what type of pressures were they able to exert on the management of the privatized firms. Also what type of restructuring activities (defensive or strategic, active restructuring) did they undertook in post-privatization period. The text will attempt to reveal the specificity of institutional and legislative underpinnings for corporate governance in Croatia and examine its impact on the evolution of initial post-ownership structures. Text emphasizes the negative impact of the corporate activities of the politically sponsored new ownership and management elite (tycoons) which emerged through the privatization process in the course of 1990s and brought a lot of adverse effects to the consolidation of the post-ownership structures, the dominant paradigm of corporate governance as well as legitimacy of the privatization process. Empirical insights indicate that such a thin new private elite led by their vested interests and predatory corporate behavior standards significantly undermined and distorted development of the healthy market corporate culture led by rule of law and prevented the formation of the widespread pro-market governing structures in Croatia. In conclusion, the text attempts to identify key factors that would shape the future evolution of the post-privatization shareholding structures in Croatia with particular emphasis on the capital market and the needed changes of underpinning legislative solutions related to securities trading and monitoring, company act etc.

Izvorni jezik
Engleski

Znanstvena područja
Politologija

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