Downsizing in Privatized Firms in Russia, Ukraine, and Belarus.

Combinig an agency perspective and downsizing research, in this study we examined two influences on employment-downsizing strategies in privatized firms in Russia, Belarus, and Ukraine: corporate governance and institutional change initiated by business crisis, in turn attributable to industry and country factors. In line with theoretical predictions, the study shows that downsizing is strongly influenced by industry-specific factors, and it is positively associated with outside, noninstitutional shareholding. However, a firm's ability to downsize is negatively associated with the extent of managerial shareholding, a finding consistent with managerial entrenchment.