TY - JOUR
T1 - Should state-owned firms change CEOs before privatization? Some evidence from the telecommunications industry
AU - Chong, Alberto
AU - Galdo, Virgilio
PY - 2007/6/1
Y1 - 2007/6/1
N2 - Should state-owned enterprises change chief executive officer (CEO) before privatizing? We test competing views on this question by complementing a recently released database with newly collected data. We are able to cover 77 telecommunications privatizations, which account for nearly 80% of the sector in terms of value. We find that CEO replacement will improve performance in the telecommunications industry before privatization as measured by penetration, operating efficiency and profitability. Chief executive officer change before privatization does appear to have real consequences in firm performance before privatization.
AB - Should state-owned enterprises change chief executive officer (CEO) before privatizing? We test competing views on this question by complementing a recently released database with newly collected data. We are able to cover 77 telecommunications privatizations, which account for nearly 80% of the sector in terms of value. We find that CEO replacement will improve performance in the telecommunications industry before privatization as measured by penetration, operating efficiency and profitability. Chief executive officer change before privatization does appear to have real consequences in firm performance before privatization.
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U2 - 10.1080/13504850600592515
DO - 10.1080/13504850600592515
M3 - Article in a journal
SN - 1350-4851
VL - 14
SP - 591
EP - 595
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 8
ER -