Differing in pace and scope, privatization in Russia and Ukraine has resulted in insiders usually dominating the ownership structure. Despite following a “giveaway” distribution of shares, Russia more than Ukraine favors outside investors. Russian managers, more so than their Ukrainian...

Employee buyout, the main privatization vehicle for large Russian industrial enterprises, has been widely critized because it provides no new funds for investment, produces sub-optimal decisions in terms of operations and strategy, and results in faulty corporate governance. While our study...