The governance life-cycle, is here defined as changes in ownership structure, and including both the identity of the major owner and ownership concentration. The cycle is marked by key events and phases including start-up, initial growth, mature growth, and possibly a crisis and restructuring stage or exit stage. The governance cycle for transitional countries reflects some specific characteristics – e.g. often privatization produces specific initial ownership structures, with an unusually high proportion of employee ownership. This was in fact the case both in Russia and in Slovenia. Subsequently pressures for restructuring produce strong impulses for ownership changes. There is limited possibility for external finance because of the embryonic development of the banking system and the capital markets during early transition. The governance cycle during transition is also influenced by other specific features of the institutional, cultural and economic environment in a country. The varying importance of these factors is expected to produce differences in key features of ownership cycles such as the speed and specific pattern at which particular ownership changes occur. To provide simple hypothesis tests, we use the enterprise data collected by REB (Russian Economi
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