Effect of Privatization on Selected Privatized Public Enterprises: Pre and Post Privatization Performance Analysis (Targeting Industries Located in Addis Ababa and its Periphery)
No Thumbnail Available
Date
2015-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
In this paper, the Effect of privatization on selected Public Enterprises in Ethiopia is analyzed by
comparing the same subjects with before and after privatization.
The study aimed to examine the operational performance changes due to the intervention of
privatization of the newly privatized enterprises. The indicators examined are profitability,
operating efficiency, capacity utilization, capital investment, and employment level.
The data were analyzed using non-parametric test, namely Wilcoxon matched-paired test to
test for the significance of the difference between pre and post privatization performance
indicators.
However, the percentages points in examined indicators show increases after privatization but
these increments are not significant, as a result the effect of privatization on performance
change is negligible, Out of the three surveyed enterprises in this study, only one sample
showed significant difference between pre and post privatization performance indicators.
It should be
privatization
well
stressed that in order to have effective
business institutions following
it requires the establishment of basic stock exchange, an institution who always
keen to reducing capital shocks, and also other government institutions’ assistance should
be accompanied
by strong rules and regulations as to
well-developed private sector
institutions, and capable secure business institutions. It is also recommended that it is wise to
acknowledge the collaboration of other stake holder as important component for inherently
to realize privatization program in Ethiopia. Furthermore, if insightful of attention given to
those newly privatized firms, intensify them as organizations go through major changes in
technology in place, and other complementary changes and this in turn boosts investor’s
confidence for more investment following privatization.
Key word: Privatization performance.
Description
Keywords
Privatization performance.