Investment funds play a key role in mass
privatization in many transition economies. But have they
lived up to expectations? The authors look at that question
in the two earliest and best-known cases--Russia and the
Czech Republic. The evidence is discouraging. It appears
that the funds have either not been able to enhance the
value of their holdings or have failed to share any gains
with their investors. Dividends have been extremely low.
Property rights created in a hasty attempt to depoliticize
property relations are weak. And capital markets remain
illiquid. Many funds have simply become holding companies
rather than active portfolio investors. The initial design
problems in mass privatization--asymmetric information and
imperfect property rights--remain.
Bibliographic Details
| Main Authors: |
Pistor, Katharina,
Spicer, Andrew |
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| Language: | English |
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| Published: |
World Bank, Washington, DC
1997-04
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| Subjects: | AFFILIATED ORGANIZATIONS,
ARBITRAGE,
ASYMMETRIC INFORMATION,
AUCTION,
BANK GROUP,
BANKING SECTOR,
CAPITAL GAINS,
CAPITAL MARKET,
CAPITAL MARKETS,
CASH FLOW,
DIVIDENDS,
DOMESTIC CAPITAL,
DOMESTIC CAPITAL MARKETS,
EMPLOYMENT,
EXPLOITATION,
FINANCIAL INSTITUTIONS,
FINANCIAL INTERMEDIARIES,
FINANCIAL MARKETS,
FINANCIAL SECTOR,
FOREIGN INVESTMENT,
IMPLEMENTATION PHASE,
INFLATION,
INFORMATION ASYMMETRIES,
INSIDER DEALING,
INVESTMENT CAPITAL,
INVESTMENT COMPANIES,
INVESTMENT DECISIONS,
INVESTMENT FUND,
MERGERS,
PORTFOLIO,
PRIVATE PROPERTY,
PRODUCTIVE ASSETS,
PROFITABILITY,
PROPERTY RIGHTS,
SECONDARY MARKET,
SECURITIES,
SWAPS,
TAXATION,
TRANSITION ECONOMIES,
TRANSPARENCY,
TRUSTS,
VALUATION DENATIONALIZATION,
LIQUIDITY,
INVESTMENT OPERATIONS,
INVESTMENT RETURNS,
INVESTMENT FUNDS,
MASS PRIVATIZATION, |
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| Online Access: | http://documents.worldbank.org/curated/en/1997/04/694880/investment-funds-mass-privatization-lessons-russia-czech-republic
https://hdl.handle.net/10986/11591
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