Excluding de novo firms, Table 1 shows the percentage of shares held by the state and by the private sector, as well as the percentage of firms more than 50 percent privatized as of July 1994, for broad industry groups and roughly 2-digit branches of industry for the sample of firms in the World Bank survey data. To summarize briefly, insider-owners are less likely to be successful at restructuring and improving performance, compared with some types of outsiders. Indeed, the Russian privatization program resulted in insider domination in the vast majority of cases, as shown in Table 2. Once again, the patterns differ significantly by sector. For instance, although insiders dominate overall, there are nonetheless significant pockets of outside ownership in the Russian economy.
Outsiders are especially prevalent in heavy industry.
We exploit the large variations in ownership patterns in our estimation of the determinants of restructuring and performance below.