Department. At the time this article was prepared, he was in the IMF’s European II Department. This arti-

This article investigates empirically the relationship between ownership concen-tration and performance in 376 partially and fully privatized Ukrainian enter-prises. It finds that ownership concentration is positively associated with enterprise performance in Ukraine. The article also finds that concentration of ownership by foreign companies and banks is associated with better performance than ownership concentrated by the domestic owners. Ownership by Ukrainian investment funds and holding companies does not have a positive effect on per-formance. The article documents that, in contrast to predictions by many observers of early transition, privatization methods determined the long-term ownership structure of privatized firms. [JEL G32, G37, L33, P31] In the last two decades of the twentieth century, major transfers of state-ownedenterprises into private ownership have taken place around the world. The scope of such transfers has been especially significant in the countries undergo-ing post-socialist transition (Nellis, 1998). These privatizations present a unique opportunity for the study of the effects of corporate ownership structure on enterprise performance. The ownership structures that were established in the process of privatization in these economies are an outcome of political bargainin