search query: @indexterm economic conditions / total: 1703
reference: 212 / 1703
| Author: | Roland, G. Sekkat, K. |
| Title: | Managerial career concerns, privatization and restructuring in transition economies |
| Journal: | European Economic Review
2000 : DEC, VOL. 44:10, p. 1857-1872 |
| Index terms: | CAREERS PRIVATIZATION ECONOMIC CONDITIONS |
| Language: | eng |
| Abstract: | The authors set up a dynamic adverse selection model to explain how career concerns may induce managers in state-owned enterprises (SOEs) to restructure their firms. It is shown how government monopsony power over managers led to the ratchet effect under a socialist economy, even under reforms coming short of privatization. The introduction of a managerial labour market, through privatization, introduces competition for managers and eliminates the ratchet effect, thereby inducing managers to restructure. |
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