THE IMPACT OF APPLYING OF PRIVATIZATION PROGRAM ON COMPANIES' PERFORMANCE: THE EXPERIENCES OF OTHER COUNTRIES

Abstract

This paper aims to discuss the most important findings of the empirical studies, which included some experiences from different countries over the world after an achievement of privatization program, where the literature review was carried out, which focused on financial and non-financial performance measures before and after privatization. They use some financial indicators such as profitability, leverage and capital investment spending as a financial performance measures. Also, they use production-related operations, operational efficiency, employment, customers' satisfaction as indicators of non-financial performance measures. The majority of the studies have examined the performance change after privatization confirm that the operational efficiency, profitability, and capital investment spending increase after privatization, in contrast, there is a reduction in financial leverage. In addition, the most part of the studies have not supported that there is an impact of privatization on employment levels. Generally, it can be considered that there is continuous improvement in privatized companies' performance after privatization.