In this book, Clemens Schutte analyzes the emergence of corporate control structures in the Czech privatization process. The book depicts the basic features of the Czech system of corporate control and the direction of its transformation. This is an extremely relevant subject since the Czech privatization process is a model case in several respects: it is institutionally open and hence allows for spontaneous development; and privatization has been carried out comprehensively and rapidly. Based upon a theoretical analysis of the institutional cornerstones of corporate control, the book develops clear recommendations which are subsequently used as a benchmark to assess the performance of the evolving Czech system of corporate control. The book discusses the role of the most important players in corporate control including the big bank-centred financial groups, capital markets, the board model of Czech corporations and the institutional base of debt control and minority shareholder protection. It also reveals the conflict of political intentions and real-time developments.
As an important and timely contribution, this book should be valuable reading for all those involved, or interested, in the privatization and corporate control of other Central and Eastern European countries. Those working in financial and political institutions should also find this book useful.