Analyzing Managerial Decisions: Property Right Security in Russian Deprivation

Analyzing Managerial Decisions: Property Right Security in Russian Deprivation
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Analyzing Managerial Decisions: Property Right Security in Russian Deprivatization
Impact of prospect deprivation: the prospect of deprivatization will impact investment by managers of privatized firms in that these managers will reduce their investment. Managers of private companies would recognize that further investments would be more risky as regards the potential payback. It is notable that the additional risk basically means political risk caused by government or political actions. The timeframe for Return on Investments (ROI) would be decreased considerably. If the timeframe is long, managers of private companies would be unsure about being in operation as a private company since they fear that if their companies are privatized forcefully, then private owners would actually lose their investment.
Effect of deprivatization on foreign investment in Russia: deprivatization will affect foreign investment in Russia in that foreign investors would recognize that Russia has a high likelihood of political risk of deprivatization. As such, these foreign investors would be reluctant and unwilling to make capital investments in Russian companies given that there is actually no assurance that the company will have any proceeds, notwithstanding the prospect of financial success.
Mass deprivatization in Russia: I do not think that mass deprivatization is in the long-run best interest of Russia. Deprivation would take Russia back to a more government controlled and ce...