Oligarchs, political regime changes, and firm valuation

Show full item record

Files in this item

Files Size Format View/Open
ET, Maury & Liljeblom, 2009.pdf 824.4Kb PDF View/Open
Use this URL to link or cite this item: http://hdl.handle.net/10227/777
Title: Oligarchs, political regime changes, and firm valuation
Author: Maury, Benjamin; Liljeblom, Eva
Citation: Economics of Transition, 2009, Vol 17 (3), pp. 411-438
Abstract: This paper examines the impact of a regime shift on the valuation of politically powerful oligarch firms. Focusing on the Yeltsin-Putin regime shift in Russia, we find that the valuations of outside shareholders claims are significantly higher under the Putin regime than under the Yeltsin regime after controlling for industry and time effects. The findings suggest that the increasing cost of extracting private benefits outweigh the reduction in the value of political connections following the political regime change. The results are also consistent with changes in the risk of state expropriation. Our results show that effects driven by the political regime change complement the traditional view stating that increased ownership concentration improved the performance of Russian oligarch firms.
URI: http://hdl.handle.net/10227/777
Date: 2010-12-31
This item appears in the following Collection(s)

Show full item record

Search Helda


Advanced Search

Browse

My Account