The governments of Hungary, Poland and Russia have used buy-outs as an important privatization
strategy which can be viewed as forming a continuum from straightforward sales where
management and employees generally achieve significant ownership, as in Hungary, via
intermediate approaches as in Poland where both payment and free distribution of shares
are involved, to the Russian case where state-owned enterprises were effectively "given
away" through a voucher privatization scheme. This paper, first, presents preliminary
evidence on the extent and nature of post-privatization restructuring in buy-outs
in these three countries, which highlights the transitory nature of this form of organization.
Second, in the light of these findings, the paper analyses the possibilities and difficulties
associated with enhancing corporate governance and finance.