Advertisement

Buyouts and the Transformation of Russian Industry

  • Trevor Buck
  • Igor Filatotchev
  • Mike Wright
Part of the The Academy of International Business Series book series (AIB)

Abstract

The 1990s have seen the collapse of the political and economic systems of the former Soviet Union (FSU) and its former satellites in the rest of Central and Eastern Europe (CEE). Progress has been made towards the political vision of democracy, but the economic vision of a market economy has proved more elusive. Citizens associated a market economy with consumer sovereignty, high living standards, rapid innovation and economic growth, but the reality has produced falling living standards and economic growth (as officially measured, at least), and high rates of unemployment and inflation. In reality, the full transition to a market economy must involve deregulation, price liberalisation, privatisation and the development of legal and financial institutions to underpin market processes. Many governments decided to privatise first and concentrate on other reforms later, in an attempt to achieve an irreversible reform of the centrally planned economy.

Keywords

Corporate Governance Former Soviet Union Residual Income Product Market Competition Voucher Scheme 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Alchian, A.A., (1987) ‘Property rights’, in J. Eatwell, M. Milgate and P. Newman (eds), The New Palgrave Dictionary of Economics, vol. 3 (London: Macmillan), pp. 1031–4.Google Scholar
  2. Aoki, M. (1990) ‘Toward an economic model of the Japanese firm’, Journal of Economic Literature, 28(1), pp. 1–27.Google Scholar
  3. Ben-Ner, A. (1993) ‘Organizational reform in Central and Eastern Europe. A comparative perspective’, Annals of Public and Co-operative Economy, 64(3), pp. 329–65.CrossRefGoogle Scholar
  4. Ben-Ner, A., Montias, J.M. and Neuberger, E. (1993) ‘Basic issues in organization’, Journal of Comparative Economics, 17(2), pp. 207–242.CrossRefGoogle Scholar
  5. Blanchard O., Dornbusch, R., Krugman, P., Layard R. and Summers, L. (1991) Reform in Eastern Europe (Cambridge, Mass. MIT Press).Google Scholar
  6. Bos, D., (1993) ‘Privatization in Europe: a comparison of approaches’, Oxford Review of Economic Policy, 9(1), pp. 95–111.CrossRefGoogle Scholar
  7. Buck, T.W., (1988) ‘Soft budgets and administration’, Comparative Economic Studies, 30(3), pp. 51–70.Google Scholar
  8. Chandler, A.D. Jr., (1993) ‘Organizational capabilities and industrial restructuring: a historical analysis’, Journal of Comparative Economics, 17(2), pp. 309–37.CrossRefGoogle Scholar
  9. Corbett, J. and Mayer, C., (1991) ‘Financial reform in Eastern Europe: progress with the wrong model’, Oxford Review of Economic Policy, 7(4), pp. 57–75.CrossRefGoogle Scholar
  10. Demsetz, H. (1993) ‘Putting wealth and enterprise control in the production function’, University of California, mimeo quoted with the permission of author.Google Scholar
  11. Demsetz, H. and Lehn. K. (1985) ‘The structure of corporate ownership: causes and consequences’, Journal of Political Economy, 93(6), pp. 1155–77.CrossRefGoogle Scholar
  12. Drucker, P.F., (1991) ‘Reckoning with the pension fund revolution’, Harvard Business Review, 69(2), pp. 106–14.Google Scholar
  13. European Bank for Reconstruction and Development, (1993) Management and Employee Buyouts in Central and Eastern Europe: an Introduction, M. Wright, I. Filatotchev, T. Buck and K. Robbie (eds) (London: EBRD).Google Scholar
  14. Filatotchev I., Buck T and Wright, M. (1992) ‘Privatisation and buyouts in the USSR’, Soviet Studies, 44(2), pp. 265–82.CrossRefGoogle Scholar
  15. Frydman, R., Phelps, E.S., Rapaczynski, A. and Shleifer, A., (1993) ‘Needed mechanisms of corporate governance and finance in Eastern Europe’, Economics of Transition 1(2), pp. 171–207.CrossRefGoogle Scholar
  16. Gilson, R.J. and Roe, M.J., (1993) ‘Understanding the Japanese Keiretsu: overlaps between corporate governance and industrial organization’, The Yale Law Review 102(4), pp. 871–906.CrossRefGoogle Scholar
  17. Green, S. and Berry, D.F. (1991) Cultural, Structural and Strategic Change in Management Buy-Outs (London: Macmillan).CrossRefGoogle Scholar
  18. Hansmann, H., (1990) ‘The viability of worker ownership: an economic perspective on the political structure of the firm’, Chapter 8 in M. Aoki, B. Gustatson and O.E. Williamson (eds), The Firm as a Nexus of Contracts (London: Sage).Google Scholar
  19. Hirschman, A., (1958) The Strategy of Economic Development (New Haven: Yale University Press).Google Scholar
  20. Jensen, M.C. (1989) ‘The eclipse of the public corporation’, Harvard Business Review, 67(5), pp. 61–74.Google Scholar
  21. Jensen, M.C. and Meckling, W.H. (1979) ‘Rights and production functions: an application to labor-managed firms and codetermination’, Journal of Business, 52(4), pp. 469–506.CrossRefGoogle Scholar
  22. Kornai, J. (1992) ‘The principles of privatization in Eastern Europe’, De Economist, 140(2), pp. 153–76.CrossRefGoogle Scholar
  23. Miles, D. (1993) ‘Testing for short-termism on the UK stock market’, Economic Journal, 103(121), pp. 1379–96.CrossRefGoogle Scholar
  24. Murrell, P. and Wang, Y. (1993) ‘When privatization should be delayed’, Journal of Comparative Economics, 17(2), pp. 385–406.CrossRefGoogle Scholar
  25. Nuti, D. (1987) ‘Co-determination and profit-sharing’, in J. Eatwell, M. Milgate and P. Newman (eds), The New Palgrave Dictionary of Economics, vol 1 (London: Macmillan), pp. 465–9.Google Scholar
  26. Putterman, L. (1993) ‘Ownership and the nature of the firm’, Journal of Comparative Economics, 17(2), pp. 243–63.CrossRefGoogle Scholar
  27. Shleifer, A. and Vishny, R.W. (1986) ‘Large shareholders and corporate control’, Journal of Political Economy, 94(3), pp. 461–88.CrossRefGoogle Scholar
  28. Stiglitz, J.E. (1985) ‘Credit markets and the control of capital’, Journal of Money, Credit and Banking, 17(2), pp. 133–52.CrossRefGoogle Scholar
  29. Thompson, R.S. and Wright, M. (1991) ‘UK management buyouts: debt, equity and agency cost implications’, Managerial and Decision Economics, 12(1), pp. 15–26.CrossRefGoogle Scholar
  30. Valentiny, P., Buck, T. and Wright, M., (1992) ‘The pricing and valuation of public assets: experiences in the UK and Hungary’, Annals of Public and Co-operative Economy, 63(4), pp. 601–19.CrossRefGoogle Scholar
  31. Weitzman, M. (1993) ‘How not to privatize’, in M. Baldassain, L. Paganetto and E. Phelps (eds) Privatization Processes in Eastern Europe (New York: St Martin’s Press).Google Scholar
  32. Williamson, O.E. (1975) Markets and Hierarchies: Analysis and Anti trust Implications (New York: Free Press).Google Scholar
  33. Wright, M., Thompson, S., Chiplin, B. and Robbie, K. (1991) BuyOuts and Buy-Ins: New Strategies in Corporate Management (London: Graham & Trotman).Google Scholar

Copyright information

© Academy of International Business UK Chapter 1996

Authors and Affiliations

  • Trevor Buck
  • Igor Filatotchev
  • Mike Wright

There are no affiliations available

Personalised recommendations