Ownership, exit and voice after mass privatization - Evidence from Mongolia

Exit (owners selling their shares) and voice (owners active in corporate ac tivities) are important ingredients in the process by which mass privatizat ion changes managerial behaviour in transition countries. We examine the st ructure of ownership and the extent of exit and voice iii one such country, Mongolia. We document the size of ownership changes since privatization (t hrough mergers, spin-offs, and stock sales) and examine which owners are ch anging in importance. We scrutinize enterprise governance, examining patter ns of violations of company law and deviations from reasonable criteria for effective governance. We show that ownership changes and the quality of go vernance are correlated.