Mass Privatisation and Privatised Firms' Performance in the Post-Privatisation Era: Empirical Evidence from the Czech Republic, Poland, and the Slovak Republic

Abstract

This study used panel data on 25 privatised firms from the Czech Republic, Poland, and Slovakia from 2000 to 2019 to explore the impact of different MPS on firm performance in the post-privatisation era. This paper then explored two main research questions: 1) The 2008 financial crisis presented problems for corporations with different governance models. How did firms built utilising various MPS models perform differently across the three countries in this context? 2) What factors would affect the performance of privatised firms in the post-privatisation era? Additionally, this study first used the Wilcoxon signed rank test to analyse six performance variables for the sample firms for eight years before and after 2008. The researcher then chose the corporate governance index (GOV) and shareholder return (ROSF) as the main explanatory variables and did a random effects regression analysis of privatised firm performance. Finally, the paper had two main findings: 1) The financial crisis had a more significant impact on the Czech Republic and Slovakia but had a more negligible influence on Poland. 2) During the post-privatisation era, GOV did not distinctly affect privatised company performance, while ROSF had a more substantial explanatory power for performance based on market development and policy...