Privatization and Efficiency: Evaluation of Corporate Financial Performance
| Autor: | Rafiu Oyesola Salawu, O.O. Akinlo |
|---|---|
| Rok vydání: | 2005 |
| Předmět: |
Inflation
Finance business.industry media_common.quotation_subject 05 social sciences Productive capacity 050301 education General Social Sciences 030206 dentistry Investment (macroeconomics) 03 medical and health sciences 0302 clinical medicine Order (exchange) Manufacturing Economics Profitability index Performance indicator Economic system business 0503 education Capital market media_common |
| Zdroj: | Journal of Social Sciences. 10:171-180 |
| ISSN: | 0971-8923 |
| DOI: | 10.1080/09718923.2005.11892477 |
| Popis: | This study examined the efficiency of privatization through the evaluation of financial performance of a privatized manufacturing company between the period 1978 to 2001. This period cover the pre-privatization and post-privatization period of the company under consideration. Privatization has been recognized as a key element to promote efficiency, reduce fiscal burden and help in developing capital market. In order to achieve the objective of the study, secondary data on the performance indicators were collected from the annual reports of the organization. However, the findings showed that the privatization programme has a significant mixed impact on the operation of the company under study. The programme also indicated a positive impact in the operating financial performance of the company as reflected in it's consistent growth rate of returns of the years under study, especially in post- privatization era of the company. In spite of the general positive impact of privatization on the financial performance of the company, the post-privatization period was beset with escalating operational cost resulting from high rate of inflation, which was seriously obstructing investment and industrial growth. Thus, policies to tame inflation should have inbuilt ability to increase the productive capacity of the company. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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