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|**Authors**|**Methodology**|**MainFindings**|
|---|---|---|
|||andwillintheend shareinthepayment ofan<br>increasedpublic debtandofalarger interestbill.<br>Thebetteroff,onthe contrary,reapedthebenefitsof<br>pnvatizaton,andofthe largerinterestratespracticed<br>bythegovemment.<br>Somecorrectonofthese<br>distortionsmight occurdependingonhowthe<br>govemmentspendsthehigher tax receiptsitis<br>collechngfromtheformerSOEs,asthey become<br>moreefficient andprofitable,aperformance also<br>supportedbytheevidencepresentedinthe paper.|
|Majumdar,<br>Sumit<br>K.<br>1996.<br>'AssessingComparative Efficiency<br>oftheState-Owned,Mixed, and<br>Private SectorsinIndian Industry."<br>_PublicChoice._96:1-24.|Thestudy looks intotheperformanceof<br>Indian<br>SOEs,<br>mixed<br>ownership<br>enterprises<br>and<br>pnvatefirmsduring<br>1973-1989.|Industry-levelsurveydatarevealsefficiencyscores<br>averaging0.975forpnvately-ownedfirms, whichis<br>significanUyhigherthanbothmixedownershipfirms<br>(0.912)<br>and<br>SOEs<br>(0.638).<br>Any<br>state sector<br>improvement<br>iscausedbyconcerted<br>efficency<br>drives,"butquicklydeclinesafterwards.|
|Shirley,MaryM.<br>1998.<br>'Why<br>PerformanceContractsforState-<br>Owned<br>Enterprises<br>Haven't<br>Worked."<br>_Public Policyforthe_<br>_Private_<br>_Sector_<br>_Note_<br>_150._<br>WashingtonD.C.: TheWorldBank.<br>htto://www.worldbank.ora/html/fpd/n<br>otes/150/150shirl.odf|A<br>study<br>of<br>performance<br>contracts,<br>lookingat12enterprisesin6developing<br>countries|This study showsthatonlyafew casesactually<br>improvedperformance(intermsoflabor productivity<br>and<br>total<br>factor<br>productivity)<br>after<br>signing<br>performancecontracts.Onthewholeperformance<br>was unchanged,withafew enterprisesactually<br>showingdecliningperformance. Thecontractsare<br>foundtohavemany flawsinthat theyassignsoft or<br>inappropriatemeasuresofeconomicperformance<br>(e.g.output- whichtakesnoaccount forproductivity<br>and canthereforeleadtoinefficiencyinachievingthe<br>goal).<br>Tocombattheseproblemscontracts mustreducethe<br>informatonadvantageofmanagersoverowners,<br>andthusleadtoappropriatetargetsbeingset<br>Incentivesprovidedtomanagersmustalso motivate<br>them. Manycontractsinthestudydonot include<br>either<br>bonuses<br>or<br>punishments<br>for<br>under-<br>achievement.Lasty,thebonusesthatare included<br>mustbeenforceable.Contractsinthestudythat<br>includedbonusesdid notallowthe managerstotake<br>thestatetocourtiftheyfailedtopay.Oncethese<br>threeitemsareincludedinacontractithasbeen<br>shown thatperformanceimproves.|
|USAID.<br>2000.<br>'The<br>Post<br>Privatization<br>Development<br>of<br>FormnerLaw 203 Companies:<br>15<br>Case Studies."<br>SpecialStudyfor<br>USAIDbyCARANACorporabon.<br>Washington<br>D.C.:<br>United<br>States<br>Agency<br>for<br>Intemabonal<br>Development|This<br>study<br>evaluates<br>the<br>post<br>privatzationperformanceof15former<br>SOEsinEgypt,examiningthe degreeto<br>whichthefirmsareindependentofthe<br>stateafterprivatizabon.|Threeofthe12companieswerenoticeablyreformed<br>afterprivatzationascontrol waspassed tothe<br>private<br>sectorandcorporate<br>govemance<br>was<br>improved.Six firmsareinatransitonalphasewith<br>newshareholders having implemented changesin<br>business<br>strategies,<br>though<br>the<br>essential<br>management<br>structure<br>and<br>corporate<br>culture<br>remainedfundamentallyunchanged.Theremaining<br>sixremainedunderstate controldespiteprivatzation.<br>Themainreasonforthe mixedperformanceofthe12<br>companies isthatwhile51percent ofmoreequity<br>wassold,thestatestllremained as the largest single<br>shareholder<br>in<br>the<br>enterprise,<br>giving<br>it<br>a<br>disproportonatelylargevoiceindecision-making.|

C. Transition Economies Barbens, Nicholas, Maxim Boycko, The study surveys 452 Russian firms The authors find that new owners and managers Andrei Shleifer, and Natalia that were sound at the beginning of the increase the chance of restructuring that Increases Tsukanova. 1996. 'How Does 1990s and attempts to measure the value. They emphasize the importance of new Privatization Work? Evidence From relabve importance of the channels human capital in the restructuring process and find the Russian Shops.' _Joumal of_ through which privatization can promote that equity incentives do not improve performance. _Po/Rical Economy._ 104: 764-790. restructuring.