IMPACT OF PRIVATISATION ON FINANCIAL PERFORMANCE AND EFFICIENCY OF STATE-OWNED ENTERPRISES

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Volume 14 Issue 2 2018

Author(s):

Bilal Ahmed
Bahria University Karachi Campus.
bilalahmed.riceintl@gmail.com

Sadaf Alam
Bahria University Karachi Campus.
sadafalam.bukc@bahria.edu.pk
Abstract This study is designed for inspecting the potential effect of privatization on the financial performance and efficiency of the Cement Sector (Kohat Cement Company and Dandot Cement Company), Oil and Gas Sector (PPL and NRL), and Service Sector (PTCL and KESC). This research is an effort to contribute to the discussion on how the privatization of state-owned enterprises may impact the financial performance and efficiency of these enterprises. The data were obtained from the State Bank library of Pakistan, Official websites of selected companies, the Security and Exchange Commission of Pakistan, and the Karachi Stock Exchange of five years pre and five years post-privatization. Moreover, Paired t-test was applied for determining and comparing the significant differences among companies' financial performances and their efficiency levels, under before and after privatization periods. The findings revealed that privatization has an insignificant impact on Cement Sector, as well as, on Service Sector. However, there is a significant impact of privatization on Oil and Gas Sector documented in this research. Furthermore, instead of privatizing companies, the government of Pakistan should accept the skills of individual persons and understand that they can resolve issues more brilliantly as compared to the third party.
Keywords Privatization, Financial performance, Efficiency, State-owned enterprises, Paired t-test
Year 2018
Volume 14
Issue 2
Type Full Length Paper
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification L33, H21, G14
DOI http://dx.doi.org/10.46745/ilma.jbs.2018.14.02.13
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/14.2/13.pdf
Page 158-173
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