Quotation Mueller, Dennis C., Peev, Evgeni. 2007. Corporate Governance and Investment in Central and Eastern Europe. Journal of Comparative Economics 35 414-437.




This article has three major goals: (i) to measure the returns on investment across Central and Eastern Europe (CEE) and compare them with companies in EU-15 countries; (ii) to study under- and overinvestment in CEE focusing on cash flow-investment sensitivity; and (iii) to compare ownership structure in CEE and EU-15 countries and measure investment performance by ownership group. We find support for the asymmetric information and managerial discretion hypotheses as explanations of under- and overinvestment.We also test for the presence of soft budget constraints in CEE, but conclude that these have hardened by the 1999/2003 period upon which our study focuses.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Comparative Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C, WH-B
Language English
Title Corporate Governance and Investment in Central and Eastern Europe
Volume 35
Year 2007
Page from 414
Page to 437
Reviewed? Y


Peev, Evgeni (Details)
Mueller, Dennis C.
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