The impact of privatization on company performance, the case of Egypt

Al Hinai, Mansoor Talib (2016). The impact of privatization on company performance, the case of Egypt. University of Birmingham. D.B.A.

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Abstract

Privatization is a debated topic for decades now. This study assesses the results of the Egyptian privatization programme. The study assess the impact of privatization on 61 IPO privatized companies for a period of 16 years. The objective of the study is to examine two key aspects; first, the impact of privatization by comparing pre to post privatization performance. Secondly, to relate the impact of privatization to the transaction itself, the performance of the privatized companies is compared to a fully private set of companies. The analytical framework used examined the profitability, operating efficiency, the sales, employment level and leverage.

By applying various statistical models, the results of the study indicated that the privatized companies post treatment examined a significant positive change in profitability, and operating efficiency and a negative impact on the leverage and employment level. Further, by comparing performance to that of private companies, it showed that privatization brought significant increase in EBIT and ROE with no significance for ROS, and ROA. There was insignificant change for Sales Efficiency and significant for the Income Efficiency; While the results of the leverage measures indicated that the privatization treatment Total Debt/Total Equity are not significant and on the contrary to the Total Debt/Total Equity. The Employment measures and Sales were significant. The comparison relative to the private showed that the DID coefficient was significant for the EBIT, ROE, the employment, sales, the leverage and the Income Efficiency; While the results was not significant for ROS, ROA, Sales Efficiency.

Type of Work:

Thesis (Doctorates > D.B.A.)

Award Type:

Doctorates > D.B.A.

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