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Blekinge Institute of Technology
School of Management
Can the Performance of State-Owned Enterprises improve when privatized? A Case study of Ghanaian based firms
Master’s Thesis in Business Administration, MBA programme
Author
Charles Arthur Ntiri
Supervisor
Dr. Jan Svanberg
December, 2010
1
Abstract
After almost two decades that privatization took place in Africa, especially in Ghana, there is not much empirical knowledge concerning the financial and operating performance of privatized firms. This study is designed to compare the financial and operating performance of pre and post privatization process in Ghana. The indicators examined are profitability, operating efficiency, output, capital investment, employment, leverage and dividend. Since the sample size is small the researcher used Wilcoxon Signed Rank Test to test for the significant of the difference between pre and post privatization performance indicators. The study measures the change in the performance indicators by comparing its average value for five years before and five years after privatization. There is no convincing evidence that suggest significant change in financial and operating performance after privatization.
2
Acknowledgements
I am grateful to God Almighty for His mercy and grace through this thesis.
I am heartily thankful to my supervisor, Dr. Jan Svanberg, whose encouragement, guidance and support from the initial to the final level of this dissertation.
I offer my regards and God‟s blessings to all who contributed directly or indirectly in the preparation of this master‟s dissertation.
Finally, I ask God‟s blessings to all my family members especially my wife Diana Arthur Ntiri
(Mrs) for her support through this thesis.
3
Table of Contents
Page
1.
2.
3.
4.
5.
6.
Introduction……………………………………………………....6
1.1.
1.2.
1.3.
1.4.
Research Background…………………………………………………….6
Discussion of the Problem………………………………………………..7
School of Management
Can the Performance of State-Owned Enterprises improve when privatized? A Case study of Ghanaian based firms
Master’s Thesis in Business Administration, MBA programme
Author
Charles Arthur Ntiri
Supervisor
Dr. Jan Svanberg
December, 2010
1
Abstract
After almost two decades that privatization took place in Africa, especially in Ghana, there is not much empirical knowledge concerning the financial and operating performance of privatized firms. This study is designed to compare the financial and operating performance of pre and post privatization process in Ghana. The indicators examined are profitability, operating efficiency, output, capital investment, employment, leverage and dividend. Since the sample size is small the researcher used Wilcoxon Signed Rank Test to test for the significant of the difference between pre and post privatization performance indicators. The study measures the change in the performance indicators by comparing its average value for five years before and five years after privatization. There is no convincing evidence that suggest significant change in financial and operating performance after privatization.
2
Acknowledgements
I am grateful to God Almighty for His mercy and grace through this thesis.
I am heartily thankful to my supervisor, Dr. Jan Svanberg, whose encouragement, guidance and support from the initial to the final level of this dissertation.
I offer my regards and God‟s blessings to all who contributed directly or indirectly in the preparation of this master‟s dissertation.
Finally, I ask God‟s blessings to all my family members especially my wife Diana Arthur Ntiri
(Mrs) for her support through this thesis.
3
Table of Contents
Page
1.
2.
3.
4.
5.
6.
Introduction……………………………………………………....6
1.1.
1.2.
1.3.
1.4.
Research Background…………………………………………………….6
Discussion of the Problem………………………………………………..7