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Privatization in emerging economies: An agency theory perspective

Academy of Management Review, ISSN: 0363-7425, Vol: 25, Issue: 3, Page: 650-669
2000
  • 547
    Citations
  • 2,336
    Usage
  • 472
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    547
    • Citation Indexes
      544
      • CrossRef
        375
      • Academic Citation Index (ACI) - airiti
        3
    • Policy Citations
      3
      • Policy Citation
        3
  • Usage
    2,336
  • Captures
    472

Review Description

The ineffectiveness of several privatized firms within emerging economies underscores the importance of agency theory issues and their impact on the privatization-performance relationship. We argue that weak governance and limited protection of minority shareholders intensify traditional principal-agent problems (perquisite consumption and entrenchment) and create unique agency problems (expropriation). We suggest that postprivatization performance can be enhanced by using appropriate ownership, management, and corporate structures that mitigate agency problems in the context of weak governance, and we highlight avenues for research.

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