TY - JOUR
T1 - The Financial and Operating Performance of Newly Privatized Firms
T2 - An International Empirical Analysis
AU - MEGGINSON, WILLIAM L.
AU - NASH, ROBERT C.
AU - VAN RANDENBORGH, MATTHIAS
PY - 1994/6
Y1 - 1994/6
N2 - This study compares the pre‐ and postprivatization financial and operating performance of 61 companies from 18 countries and 32 industries that experience full or partial privatization through public share offerings during the period 1961 to 1990. Our results document strong performance improvements, achieved surprisingly without sacrificing employment security. Specifically, after being privatized, firms increase real sales, become more profitable, increase their capital investment spending, improve their operating efficiency, and increase their work forces. Furthermore, these companies significantly lower their debt levels and increase dividend payout. Finally, we document significant changes in the size and composition of corporate boards of directors after privatization. 1994 The American Finance Association
AB - This study compares the pre‐ and postprivatization financial and operating performance of 61 companies from 18 countries and 32 industries that experience full or partial privatization through public share offerings during the period 1961 to 1990. Our results document strong performance improvements, achieved surprisingly without sacrificing employment security. Specifically, after being privatized, firms increase real sales, become more profitable, increase their capital investment spending, improve their operating efficiency, and increase their work forces. Furthermore, these companies significantly lower their debt levels and increase dividend payout. Finally, we document significant changes in the size and composition of corporate boards of directors after privatization. 1994 The American Finance Association
UR - https://www.scopus.com/pages/publications/84993888589
U2 - 10.1111/j.1540-6261.1994.tb05147.x
DO - 10.1111/j.1540-6261.1994.tb05147.x
M3 - Article
AN - SCOPUS:84993888589
SN - 0022-1082
VL - 49
SP - 403
EP - 452
JO - Journal of Finance
JF - Journal of Finance
IS - 2
ER -
