Publication at Faculty of Social Sciences, Faculty of Mathematics and Physics, Centre for Economic Research and Graduate Education |
2012
Abstract
We analyze the effects of firm break-up on corporate performance. Our analysis is based on a unique data set for a large number of Czech firms spanning the period 1996-2000.
We employ a propensity score matching procedure to deal with endogeneity problems. Our results, which are generally in line with the positive effects of firm break-up found in the developed-market literature, show that the initial effects of firm break-up are positive but after a certain point they disappear within a short time.
Factors like changes in ownership structure or management are found to be behind later improvements in the performance of firms.