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Privatization and Business Valuation in Transition Economies

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Financial Innovations and the Welfare of Nations

Abstract

As the global economy moves ever more to market-based economic systems, increasing numbers of state-owned organizations are being privatized. However, privatization in transition economies generally faces significant macro-economic instability, non-existent or underdeveloped capital markets, and unreliable and inconsistent information. In addition, for the owning national authorities, maximizing the sale prices may be only one of many economic and political goals. Thus, the valuation determinants of privatized firms in the emerging economies are significantly more complex than share offerings in developed capital markets. This chapter reviews the results of the various privatization procedures, and presents some empirical results and concludes that voucher privatization can be one of the more successful procedures in distributing and fairly pricing ownership in formerly state-owned companies.

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Author information

Authors and Affiliations

  1. Graduate School of Management, Kent State University, USA

    Raj Aggarwal

  2. Florida Atlantic University, USA

    Joel T. Harper

Authors
  1. Raj Aggarwal
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  2. Joel T. Harper
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Editor information

Editors and Affiliations

  1. Fletcher School of Law and Diplomacy, Tufts University, USA

    Laurent L. Jacque  & Paul M. Vaaler  & 

  2. HEC School of Management, France

    Laurent L. Jacque

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© 2001 Springer Science+Business Media New York

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Aggarwal, R., Harper, J.T. (2001). Privatization and Business Valuation in Transition Economies. In: Jacque, L.L., Vaaler, P.M. (eds) Financial Innovations and the Welfare of Nations. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1623-1_9

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  • DOI: https://doi.org/10.1007/978-1-4615-1623-1_9

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-5646-2

  • Online ISBN: 978-1-4615-1623-1

  • eBook Packages: Springer Book Archive

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