A study to measure the impact of privatized industries

Miri, S.; Aawani, H.

Abstract: One of the most important issues in privatization is to measure the impact of such decisions on improving efficiency of governmental organizations. Privatization, in the past, has had both positive and negative consequences in different countries. Therefore, it is necessary to measure the impact of privatization in Iran to see the outcome of such decision. In this paper, we present an empirical study to measure the financial performance of the privatized firms three years before and three years after privatization happed using pairwise t-student. We use five financial figures of asset turnover, working capital turnover, return on assets, return on equity and earnings per share. The results indicate that there was no meaningful relationship between these financial figures before and after privatization occurred.

How to cite this paper

 Miri, S & Aawani, H. (2012). A study to measure the impact of privatized industries.Management Science Letters , 2(5), 1505-1510.

References

Ahmad, S., & Schroeder, R.G. (2003). The impact of human resource management practices on operational performance: recognizing country and industry differences. Journal of Operations Management, 21(1), 19-43.

Boubakri, N., & Bouslimi, L. (2010). Analyst following of privatized firms around the world: The role of institutions and ownership structure. The International Journal of Accounting, 45(4), 413-442.

Boubakri, N., Cosset, J.C., & Saffar, W. (2008). Political connections of newly privatized firms. Journal of Corporate Finance, 14(5), 654-673

Harper, J. T. (2002).The performance of privatized firms in the Czech Republic. Journal of Banking & Finance, 26(4), 621-649.

Mathur, I., & Banchuenvijit, W. (2007). The effects of privatization on the performance of newly privatized firms in emerging markets. Emerging Markets Review, 8(2), 134-146.

Ng, A., Yuce, A., & Chen, E. (2009). Determinants of state equity ownership, and its effect on value/performance: China & apos; s privatized firms. Pacific-Basin Finance Journal, 17(4), 413-443

Omran, M. (2004).The Performance of State-Owned Enterprises and Newly Privatized Firms: Does Privatization Really Matter? World Development, 32(6), 1019-1041.

Qi, D., Wu, W., & Zhang, H. (2000). Shareholding structure and corporate performance of partially privatized firms: Evidence from listed Chinese companies. Pacific-Basin Finance Journal, 8(5), 587-610.

Vogel, H.A. (2011). Do privatized airports add financial value? Research in Transportation Business & Management, 1(1), 15-24.

Wei, Z., & Varela,O. (2003). State equity ownership and firm market performance: evidence from China & apos; s newly privatized firms. Global Finance Journal, 14(1), 65-82.