Karel Havlíček

Analysis of Large-Scale Privatisation in the Czech Republic in the Years 1991-2005 on the Sample of Selected Privatised Companies

The objective of this paper is to analyse, evaluate and compare the individual methods of Czechoslovak and Czech privatisation in the years 1991-2005 based on long-term economic indicators. The empirical research focuses on a sample of 60 companies privatised between 1991 and 2005 which were selected from the list of 3500 large-scale privatised firms in the Czech Republic by the National Property Fund of the Czech Republic and divided into three groups. The expenditures associated with the large-scale privatisation were covered by the revenues from the sales of property. Based on data analyses, it may be inferred that the best results have been reported by companies sold directly to foreign investors, while lower for voucher privatisation and direct sales to specific domestic investors. The privatisation processes aimed at selecting such owners that would have the capacity required to timely complete the subsequent restructuring process and to set up such procedures that would secure continued operation of the enterprises. The revenues from the sold property is a secondary criterion subordinated to the primary objective. The originality of this work lies in studying the main steps undertaken as part of the so-called large-scale privatisation, after nearly a quarter of a century, and its measurable impacts on the domestic economic environment.