Effect of the Czech firms break-up on their profitability and productivity

Abstract

In this article we analyze medium- and long-term effects of firm break-up (and subsequent change in ownership) on its profitability and productivity. We use an extensive data-set of the Czech firms for the period 1996-2005.

We employ the propensity score based matching methodology to account for potential endogeneity.

Keywords

• break-up of firms
• corporate performance
• emerging markets