Munich Personal RePEc Archive

The Effect of Firm Ownership Structure on Performance: A case study of Eastern Europe and Central Asian Countries.

Bekena, Sisay Menji (2017): The Effect of Firm Ownership Structure on Performance: A case study of Eastern Europe and Central Asian Countries.

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Abstract

This paper uses World Bank Enterprise Survey 2009 and 2013 panel data for Central Asia and Eastern Europe to estimate the casual effects of firm ownership structure on firm performance measured by the growth rates of sales, labor productivity and employment. The study uses treatment effect models to compute the average treatment effects. Estimation results using propensity score matching show that on average private firms have sales and employment growth rates that are 6 percentage points higher compared to public firms. The effect is statistically significant at conventional significance levels. Labor productivity growth is similar across public and private firms. The key conditional independence assumption necessary for the validity of the matching models is found to be valid and the computed casual effects are consistent across the different treatment effect models.

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