Performance of Czech Companies by Ownership Structure

We find that ownership concentration in the Czech Republic is associated with improvements in the performance of operating companies, but only if ownership is concentrated in hands other than investment funds. We assessed the effects of ownership structure on economic performance by measuring the relationship between annual changes in performance and annual changes in the composition of ownership shares during the year. Using five different measures of performance we were consistently able to reject the hypothesis that changes in the ownership share of funds had the same effect on performance of operating as changes in the ownership share of other types of owners. We used robust estimation techniques, in addition to OLS estimation