Effects of Ownership and Management Changes on Productivity in Privatized Montenegrin Firms

This study reflects the relationship between ownership change, ownership concentration, management turnover, and productivity of Montenegrin privatized companies covering the period 2004-7. Results show that ownership concentration and the presence of domestic and foreign private owners are positively related to firms' productivity. Companies that replaced the chairman of the management board also improved their productivity. The study further discusses the results in terms of the specific characteristics of the Montenegrin economy and the relevance of the study results for the general characteristics of the transition economies.