The value of restructuring in emerging economies: The case of the Czech Republic

Strategic Management Journal

Volumn 25, Issue 3, 2004, Pages 243-267

  Makhija, Mona V ^a  

^a OHIO STATE UNIVERSITY   (United States)

Author keywords

Emerging economies; Firm value; Privatization; Restructuring; Transitional economies

Indexed keywords

DATABASE SYSTEMS; INDUSTRIAL MANAGEMENT; INVESTMENTS; PRIVATIZATION; SOCIETIES AND INSTITUTIONS; STRATEGIC PLANNING;

CZECH REPUBLIC; STOCK PRICES;

INDUSTRIAL ECONOMICS;

EID: 1242265430     PISSN: 01432095     EISSN: None     Source Type: Journal    
DOI: 10.1002/smj.378     Document Type: Review

References (80)

1. Barberis N, Boycko M, Shleifer A, Tsukanova N. 1996. How does privatization work? Evidence from Russian shops. Journal of Political Economy 104: 764-790.
2. Berger PG, Ofek E. 1995. Diversification's effect on firm value. Journal of Financial Economics 37: 39-65.
3. Bergh DD. 1997. Predicting divestiture of unrelated acquisitions: an integrative model of ex ante conditions. Strategic Management Journal 18(9): 715-731.
4. Berlin M, Loeys J. 1988. Bond covenants and delegated monitoring. Journal of Finance 43: 397-412.
5. Bethel J, Liebeskind J. 1993. The effects of ownership structure on corporate restructuring. Strategic Management Journal, Summer Special Issue 14: 15-31.
6. Bohata M, Hanel P, Fischer M. 1995. Performance of manufacturing. In The Czech Republic and Economic Transition in Eastern Europe, Svejnar J (ed). Academic Press: San Diego, CA; 255-284.
7. Bowman EH, Singh H. 1993. Corporate restructuring and reconfiguring the firm. Strategic Management Journal, Summer Special Issue 14: 5-14.
8. Child J, Lu Y. 1996. Institutional constraints on economic reform: the case of investment decisions in China. Organization Science 7: 60-67.
9. Choi CJ, Lee SH, Kim JB. 1999. A note on countertrade: contractual uncertainty and transaction governance in emerging economies. Journal of International Business Studies 30: 189-201.
10. Claessens S. 1997. Corporate governance and equity prices: evidence from the Czech and Slovak Republics. Journal of Finance 52(4): 1641-1658.
11. Coase R. 1998. The new institutional economics. American Economic Review 88: 72-74.
12. Coffee JC. 1996. Institutional investors in transitional economies: lessons from the Czech experience. In Corporate Governance in Central Europe and Russia, Vol. 1. Central European Press: Budapest; 111-186.
13. Comment R, Jarrell GJ. 1995. Corporate focus and stock returns. Journal of Financial Economics 37: 68-87.
14. Cusatis P, Miles J, Woolridge JR. 1993. Restructuring through spinoffs: the stock market evidence. Journal of Financial Economics 33: 293-311.
15. Daley L, Mehrotra V, Sivakumar R. 1997. Corporate focus and value creation: evidence from spinoffs. Journal of Financial Economics 45: 257-281.
16. Davis R, Thomas LG. 1993. Direct estimation of synergy: a new approach to the diversity-performance debate. Management Science 39: 1343-1346.
17. Denis DJ, Denis DK, Sarin A. 1997. Agency problems, equity ownership, and corporate diversification. Journal of Finance 52: 135-160.
18. Desai H, Jain PC. 1999. Firm performance and focus: long-run stock market performance following spinoffs. Journal of Financial Economics 54: 75-101.
19. Diamond D. 1991. Monitoring and reputation: the choice between bank loans and directly placed debt. Journal of Political Economy 99: 689-721.
20. Dierickx I, Cool K. 1989. Asset stock accumulation and sustainability of competitive advantage. Management Science 35: 1504-1511.
21. Dyba K, Svejnar J. 1991. Czechoslovakia: recent developments and prospects. American Economic Review 81: 185-190.
22. Dyba K, Svejnar J. 1995. A comparative view of economic developments in the Czech Republic. In The Czech Republic and Economic Transition in Eastern Europe, Svejnar J (ed). Academic Press: San Diego, CA; 21-46.
23. Ericson RE. 1991. The classical Soviet-type economy: nature of the system and implications for reform. Journal of Economic Perspectives 5: 11-27.
24. Fama E. 1985. What's different about banks? Journal of Monetary Economics 15: 29-39.
25. Filatotchev I, Buck T, Zhukov V. 2000. Downsizing in privatized firms in Russia, Ukraine, and Belarus. Academy of Management Journal 43: 285-304.
26. Frydman R, Rapaczynski A. 1994. Privatization in Eastern Europe: Is the State Withering Away? Central European University Press: London.
27. Gertner RH, Scharfstein DS, Stein JC. 1994. Internal versus external capital markets. Quarterly Journal of Economics 109: 1211-1230.
28. Gibbs P. 1993. Determinants of corporate restructuring: the relative importance of corporate governance, takeover threat, and free cash flow. Strategic Management Journal, Summer Special Issue 14: 51-68.
29. Goold M, Campbell A. 1998. Desperately seeking synergy. Harvard Business Review 76: 130-143.
30. Grant RM, Jammine AP, Thomas H. 1988. Diversity, diversification, and profitability among British manufacturing companies. Academy of Management Journal 31: 771-801.
31. Hingorani A, Lehn K, Makhija A. 1997. Investor behavior in mass privatization: the case of the Czech voucher scheme. Journal of Financial Economics 44: 349-396.
32. Hitt MA, Ireland RD, Hoskisson RE. 1999. Strategic Management: Competitiveness and Globalization (3rd edn). International Thomas Publishing: Cincinnati, OH.
33. Holderness C, Sheehan D. 1988. The role of majority shareholders in publicly held corporations. Journal of Financial Economics 20: 317-346.
34. Hoskisson RE, Eden L, Lau CM, Wright M. 2000. Strategy in emerging economies. Academy of Management Review 43: 249-267.
35. Hoskisson RE, Johnson RA. 1992. Corporate restructuring and strategic change: the effect on diversification strategy and R&D intensity. Strategic Management Journal 13(8): 625-634.
36. Hoskisson RE, Johnson RA, Moesel DD. 1994. Corporate divestiture intensity in restructuring firms: effects of governance, strategy and performance. Academy of Management Journal 37: 1207-1251.
37. Houston J, James C. 1996. Bank info monopolies and the mix of private and public debt claims. Journal of Finance 51: 1863-1889.
38. John K, Ofek E. 1995. Asset sales and increases in focus. Journal of Financial Economics 37: 105-126.
39. Judge G, Griffith W, Hill R, Lee T. 1980. The Theory and Practice of Econometrics. Wiley: New York.
40. Khanna T, Palepu K. 2000. The future of business groups in emerging markets: long-run evidence from Chile. Academy of Management Journal 43: 268-285.
41. Khanna T, Rivkin JW. 2001. Estimating the performance effects of business groups in emerging markets. Strategic Management Journal 22(1): 45-74.
42. Kornai J. 1992. The Socialist System. Princeton University Press: Princeton, NJ.
43. Kosnik R. 1990. Effects of board demography and directors' incentives on corporate greenmail decisions. Academy of Management Journal 33: 129-150.
44. Kotrba J. 1995. Privatization process in the Czech Republic: players and winners. In The Czech Republic and Economic Transition in Eastern Europe, Svejnar J (ed). Academic Press: San Diego, CA; 159-199.
45. Krishnaswami S, Spindt P, Subramaniam V. 1999. Information asymmetry, monitoring and the placement structure of corporate debt. Journal of Financial Economics 51: 407-434.
46. Krishnaswami S, Subramaniam V. 1999. Information asymmetry, valuation and the corporate spin-off decision. Journal of Financial Economics 53: 73-112.
47. Lamont O. 1997. Cash flow and investment: evidence from internal capital markets. Journal of Finance 52: 83-109.
48. Lang LHP, Stulz RM. 1994. Tobin's q, corporate diversification and firm performance. Journal of Political Economy 102: 1248-1280.
49. Lichtenberg FR. 1992. Industrial de-diversification and its consequences for productivity. Journal of Economic Behavior and Organization 18: 427-438.
50. Liebeskind J, Opler TC. 1992. The causes of corporate refocusing. Working paper, Southern Methodist University.
51. Lipton D, Sachs J. 1990. Creating a market economy in Eastern Europe: the case of Poland. Brookings Papers on Economic Activity 1: 293-304.
52. Makhija M. 2003. Comparing the resource-based and market-based views of the firm: empirical evidence from Czech privatization. Strategic Management Journal 24(5): 433-451.
53. Makhija M, Stewart A. 2002. The effect of national context on perceptions of risk: a comparison of planned versus free-market managers. Journal of International Business Studies 33: 737-756.
54. Mallette P, Fowler K. 1992. Effects of board composition and stock ownership on the adoption of 'poison pills.' Academy of Management Journal 35: 1010-1036.
55. Markides CC. 1992. The economic characteristics of de-diversifying firms. British Journal of Management 3(2): 91-100.
56. Markides CC. 1995. Diversification, restructuring and economic performance. Strategic Management Journal 16(2): 101-118.
57. Maug E. 1998. Large shareholders as monitors: is there a trade-off between liquidity and control? Journal of Finance 53: 65-98.
58. McConnell J, Servaes H. 1990. Additional evidence on equity ownership and corporate value. Journal of Financial Economics 27: 595-612.
59. McDermott GA. 2002. Embedded Politics: Industrial Networks and the State in Post-Communism. University of Michigan Press: Ann Arbor, MI.
60. Megginson W, Netter J. 2000. From state to market: a survey of empirical studies on privatization, Working paper, New York Stock Exchange and SBF Bourse de Paris.
61. Mejstrik M. 1997. The Privatization Process in East-Central Europe: Evolutionary Process of Czech Privatizations. Kluwer: Norwell, MA.
62. Morck R, Shleifer A, Vishny R. 1988. Managerial ownership, and market valuation: an empirical analysis. Journal of Financial Economics 20: 293-316.
63. North D. 1990. Institutions, Institutional Change, and Economic Performance. Cambridge University Press: Cambridge, UK.
64. Palich LE, Cardinal LB, Miller CC. 2000. Curvilinearity in the diversification-performance linkage: an examination of over three decades of research. Strategic Management Journal 21(2): 155-174.
65. Porter ME. 1990. The Competitive Advantage of Nations. Free Press: New York.
66. Rajan R, Servaes H, Zingales L. 2000. The cost of diversity: the diversification discount and inefficient investment. Journal of Finance 55(1): 35-80.
67. Robins J, Wiersema MF. 1995. A resource-based approach to the multibusiness firm: empirical analysis of portfolio interrelationships and corporate financial performance. Strategic Management Journal 16(4): 277-299.
68. Scharfstein DS, Stein J. 1996. The dark side of internal capital markets: divisional rent-seeking and inefficient investment. Working paper, Massachusetts Institute of Technology.
69. Servaes H. 1996. The value of diversification during the conglomerate merger wave. Journal of Finance 51: 1201-1226.
70. Seward JK, Walsh JP. 1996. The governance and control of voluntary corporate spin-offs. Strategic Management Journal 17(1): 25-39.
71. Shin JC, Stulz RM. 1998. An analysis of divisional investment policies of diversified firms. Quarterly Journal of Economics 113: 531-552.
72. Shleifer A, Vishny R. 1986. Large shareholders and corporate control. Journal of Political Economy 94: 461-488.
73. Sujan I, Sujanova M. 1995. The macroeconomic situation in the Czech Republic. In The Czech Republic and Economic Transition in Eastern Europe, Svejnar J (ed.). Academic Press: San Diego, CA; 119-136.
74. Svejnar J, Singer M. 1994. Using vouchers to privatize an economy: the Czech and Slovak case. Economics of Transition 2: 43-69.
75. United Nations. 1993. Case Study of Czechoslovakia: Accounting, Valuation and Privatization. United Nations Publications: New York.
76. White H. 1980. A heteroskedasticity consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrics 48: 817-838.
77. Williamson O. 1985. The Economic Institutions of Capitalism. Free Press: New York.
78. Williamson O. 1991. Comparative economic organization: the analysis of discrete structural alternatives. Administrative Science Quarterly 36: 269-296.
79. Zemplinerova A, Stibal J. 1995. Evolution and efficiency of concentration in manufacturing. In The Czech Republic and Economic Transition in Eastern Europe, Svejnar J (ed). Academic Press: San Diego, CA; 233-254.
80. Zingales L. 1994. The value of the voting right: a study of the Milan Stock Exchange experience. Review of Financial Studies 7: 125-148.