Does divestment matter for firm performance?: Evidence from the Indian experience

Saibal Ghosh

Economic Systems, 2008, vol. 32, issue 4, pages 372-388

Abstract: We employ data on federal government-owned public enterprises since the 1980s that encompass the partial privatization program to examine its impact on a gamut of performance measures. The analysis indicates that fully government-owned firms are significantly less profitable than partially privatized ones. The evidence also indicates that while the improvements in profitability largely occur during the one to three years just before privatization, the progress in terms of leverage and employment are typically spread out over a much longer period. Finally, the results indicate that the auction method of privatization maximizes government revenues, after controlling for the state of economic activity and other macroeconomic factors.

Keywords: Partial; privatization; Profitability; Wages; Leverage; Employment; India (search for similar items in EconPapers)
Date: 2008

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6W8Y ... c96a9e642f98e6e268bb
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:ecosys:v:32:y:2008:i:4:p:372-388

Access Statistics for this article

Economic Systems is edited by R. Frensch

More articles in Economic Systems from Elsevier
Series data maintained by Heidi Boesdal ().