Endogenous ownership structure:factors affecting the post-privatisation equity in largest Hungarian firms

Using a data set for the 162 largest Hungarian firms during the period of 1994-1999, this paper explores the determinants of equity shares held by both foreign investors and Hungarian corporations. Evidence is found for a post-privatisation evolution towards more homogeneous equity structures, where dominant categories of Hungarian and foreign owners aim at achieving controlling stakes. In addition, focusing on firm-level characteristics we find that exporting firms attract foreign owners who acquire controlling equity stakes. Similarly, firm-size measurements are positively associated with the presence of foreign investors. However, they are negatively associated with 100% foreign ownership, possibly because the marginal costs of acquiring additional equity are growing with the size of the assets. The results are interpreted within the framework of the existing theory. In particular, following Demsetz and Lehn (1985) and Demsetz and Villalonga (2001) we argue that equity should not be treated as an exogenous variable. As for specific determinants of equity levels, we focus on informational asymmetries and (unobserved) ownership-specific characteristics of foreign investors and Hungarian investors.

Hungarian international development cooperation:context, stakeholders and performance

This paper explores the domestic and international context of Hungary's emerging international development policy. Specifically, it looks at three factors that may influence how this policy operates: membership in the European Union (EU) and potential ‘Europeanization’, Hungary's wider foreign policy strategy, and the influence of domestic stakeholders. In order to uncover how these factors affect the country's international development policy, semi-structured interviews were carried out with the main stakeholders. The main conclusions are: (1) While accession to the EU did play a crucial role in restarting Hungary's international development policy, the integration has had little effect since then; (2) international development policy seems to serve mainly Hungary's regional strategic foreign policy and economic interests, and not its global development goals; and (3) although all the domestic development stakeholders are rather weak, the Ministry of Foreign Affairs (MFA) still seems to play a dominating role. Convergence with European requirements and best practices is, therefore, clearly hindered by foreign policy interests and also by the weakness of non- governmental stakeholders.

Neither security nor development? Czech and Hungarian identities and interests in the provincial reconstruction teams in Afghanistan

This article builds on the securitisation and post-development literature and it scrutinises the Czech and Hungarian legitimising discourses of the two countries’ respective Provincial Reconstruction Teams (PRTs) in the Logar and Baghlan provinces of Afghanistan from 2007 to 2013. In spite of the hybrid civil–military character of the PRTs, their security–development nexus was absent and they were respectively securitised and “developmentalised” only indirectly and to a varying extent. The PRTs were mostly justified by the Czech Republic's NATO membership as an identity issue and they were justified as a Hungarian national interest and as both an obligation and an opportunity. Rather than merely importing NATO's arguments as suggested by the previous literature, the depoliticisation and positive connotation of the intervention in Afghanistan was constructed by the domestic NATO-related identities and interests in the Czech Republic and Hungary.