View article

A key task facing the economies in transition is to transform state-owned enterprises (SOEs) into value-maximizing concerns.'SOEs are qualitatively different from fms in a market economy. Property rights are hazy, control by managers is subject to the consent of employees, activities often include social welfare and the organization is large by dint of planning decree rather than market~ uccess.~ Evaluating the extent to which restructuring has been successful and the determinants of the desire and ability to restructure is crucial to the people and policy-makers of the Central and Eastern European countries (CEECs). The empirical evidence generally used to measure and understand restructuring is vastly inadequate. Researchers are forced to rely on macro-economic data which are both too aggregate and generally of a low quality. Systematic micro-evidence on enterprises is rarely available and, where it is, it has …