Post Privatisation Ownership Concentration: Determinants and Influence on Firm Efficiency
Abstract: Our paper aims to contribute to the empirical evidence that analyses the privatisation processes by studying the determinants of post privatisation ownership concentration and whether the chosen ownership structure of privatised firms constitutes an efficient governance mechanism and may help explain their effiency. For a cross section of 41 Spanish privatised firms within the period 1985-2003, we find that the method of privatisation and firms growth help explain differences in ownership concentration of divested firms. Furthermore, after controlling for the endogeneity of ownership concentration the results show a positive and significant effect of ownership concentration on firms’ post privatisation efficiency.
