Effective privatization requires enforceable investor protection? Discuss whether there was investor protection for minorities in this case and if so what protection was there and why did they not work. If there was little or no protection explain what types of protection could be implemented in the transition from state ownership to public control. (20 Marks)
(b) Give examples of two countries, one where there has been investor protection and one where there was little protection for investors in the transition from public to private ownership and explain what form the protection takes. (10 marks)
(c) ?Following Yafeh and Yosha (2003), we identify selling and administrative expenses as a key measure of activities related to managerial moral hazard. ? The above quote is from the case but why as these expenses a key measure of moral hazard and what is moral hazard?
(d) For each of the main groups of shareholders in figure 9.3 after flotation show a mendelow diagram showing where you feel each group should be. Justify why each group should be in the position you have placed them.