Effect of Enterprise Break-Ups on Performance: Case of Former Yugoslav Republic of Macedonia.

Macedonia is a specific case among transition economies where a large number of break-ups occurred at the beginning of privatization. Using firm-level data, the effects of the break-ups of enterprises on the subsequent performance of the "master enterprises" and spun off divisions during the period of privatization is estimated. It is estimated the performance effects by comparing the performance of enterprises that remained intact to the performance of enterprises that experienced spin-offs and the newly established subsidiaries. The goal is to provide empirical evidence on the issue of the effect of pre-privatization restructuring. Results suggest that the breakups were not guided by efficiency or performance goals but rather managerial self-interests.Available from STL Prague, CZ / NTK - National Technical LibrarySIGLECZCzech Republi