Enterprise performance and ownership: The case of Ukraine

In this paper, we use a unique enterprise level random survey of 150 firms in Ukraine to test hypotheses on the relationship between enterprise perfor mance and ownership in transitional economies. In particular, we explore wh ether privatisation has yielded improved company performance and whether sp ecific ownership forms (insider, manager, worker, and outsider) have led to differentiated behaviour at the enterprise level. Our analysis also explor es the determinants and ramifications of barter, a widespread phenomenon ac ross the former Soviet Union. We refute the hypothesis that private ownersh ip per se is associated with improved performance, and try to isolate any p ositive performance effects from outsider ownership. However, we do isolate some clear ownership effects, associated with insider ownership. We find b arter to be associated with lower profitability, and to be less common in p rivatised firms. (C) 1999 Elsevier Science B.V. All rights reserved.