Pyramid State Ownership and Control in the Czech Republic

Authored by: Evžen Kočenda , Jan Hanousek

Handbook of the Economics and Political Economy of Transition

Print publication date:  April  2013
Online publication date:  May  2013

Print ISBN: 9780415591126
eBook ISBN: 9780203067901
Adobe ISBN: 9781135080877


 Download Chapter



State ownership and its transformation has been a feature that is an inherent part of the transition experience and led to the emergence of corporate pyramid structures in various transition economies (Ma et al., 2006; Chernykh, 2008; Kočenda and Hanousek, 2009). In general, a corporate pyramid is a group of firms whose ownership structure follows a top-to-bottom direction of control, where the ultimate owner is at the top and exerts its control over firms at successive lower levels. This fractal-like pattern of ownership can proliferate to several levels. The key characteristic of a corporate pyramid is a separation between ownership and control, which lends the ultimate owner leveraged power over minority shareholders. La Porta et al., (1999) show that corporate pyramids are widespread around the world but these structures are more often present in emerging markets (Khanna and Yafeh, 2007).

Search for more...
Back to top

Use of cookies on this website

We are using cookies to provide statistics that help us give you the best experience of our site. You can find out more in our Privacy Policy. By continuing to use the site you are agreeing to our use of cookies.