Several studies have stressed that, contrary to initial expectations, state-owned firms at the beginning of the transition undertook painful measures to adjust to the new economic environment. This paper investigates this behaviour in a simple game theoretic framework. It is argued that the massive amount of lay-offs created by state-owned firms during the initial phase of the transition can be interpreted as a signal directed to the banking sector in order to obtain more favourable financing conditions for the subsequent process of restructuring. The conclusions are strongly supported by Polish firm-level empirical evidence

Colombo, E. (2002). Restructuring as a Signal: a Simple Formalization. ECONOMICS OF TRANSITION, 10(1), 119-142 [10.1111/1468-0351.00105].

Restructuring as a Signal: a Simple Formalization

Colombo, E
2002

Abstract

Several studies have stressed that, contrary to initial expectations, state-owned firms at the beginning of the transition undertook painful measures to adjust to the new economic environment. This paper investigates this behaviour in a simple game theoretic framework. It is argued that the massive amount of lay-offs created by state-owned firms during the initial phase of the transition can be interpreted as a signal directed to the banking sector in order to obtain more favourable financing conditions for the subsequent process of restructuring. The conclusions are strongly supported by Polish firm-level empirical evidence
Articolo in rivista - Articolo scientifico
Transitional economies, signalling, restructuring
English
119
142
24
Colombo, E. (2002). Restructuring as a Signal: a Simple Formalization. ECONOMICS OF TRANSITION, 10(1), 119-142 [10.1111/1468-0351.00105].
Colombo, E
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/9360
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