The objective of this paper is to study the link between performance and ownershipstructure of privatized firms by reviewing relevant literature. Major findings are as follows.First, without a large number of outside controlling shareholders, privatized firmsû agencycosts of managerial control may increase even though their costs of political controldecrease. Second, privatized firms with more concentrated private ownership generategreater post-privatization performance. Next, a positive effect of ownership concentrationon firm performance is larger in countries where investor protection is weak. Lastly,privatizations with more concentrated ownership are less likely to take place as publicofferings.