Performance, Ownership, and Management Turnover in Privatized Slovenian Companies

摘要

This paper first tests the efficiency of management turnover as a corporate governance mechanism in Slovenia, a successful transition country. Second, it examines the relation between management turnover and owner identity and indirectly questions the sustainability of the current corporate governance system, characterized as "insider oriented" and unfriendly to foreign investments. The analysis is based on a panel of 211 Slovenian companies from 1998 to 2002. Results show that management turnover is an efficient corporate governance mechanism in Slovenia, but its extent is limited. Outsiders do not appear to be more efficient owners than are insiders, whereas the state is identified as an inefficient owner, especially in the case of direct state ownership.