hellow

Topics: Public company, Nationalization, Public ownership Pages: 49 (11993 words) Published: November 4, 2014
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 Objectives of the Study…………………………………………………..7 Basic Hypotheses…………………………………………………............8

Literature Review……………………………………………............9 2.1. What is Privatization?.................................................................................9 2.2. Origination of Privatization………………………………………………..9 2.3. Why Privatization…………………………………………………………10 2.3.1. Internal Determinants………………………………………………….11 2.3.2. External Determinants…………………………………………………12 2.4. Arguments For and Against Privatization…………………………...........12 2.5. The Process of Privatization in Ghana……………………………………14 2.5.1. Forms of Privatization…………………………………………………15 2.5.2. The Impact of Divestiture in Ghana……………………………...........19

Research Methodology……………………………………………...21 3.1.
3.2.
3.3.
3.4.
3.5.
3.6.
3.7.

The case Study Approach…………………………………………............21 Selecting a Research Setting……………………………………………...21 Selection of the case firms………………………………………………..21 Selection of Participants………………………………………………….23 Data Collection……………………………………………………...........23 Data Analysis……………………………………………………………..24 Limitations of the Research………………………………………………26

The Background of the selected firms………………………………....27 Research Findings and Discussion………………………………...........30

5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.
5.8.

Profitability…………………………………………………………..........30 Operating Efficiency……………………………………………………….32 Capital Investment…………………………………………………………33 Output……………………………………………………………………...34 Employment…………………………………………………………..........35 Leverage…………………………………………………………………....36 Dividend……………………………………………………………..........37 Findings from the interviews……………………………………………...39

Conclusion and Recommendation………………………………............44

Reference…………………………………………………...........46 4

List of Figures and Tables
Table 2.1.

The Breakdown on annual basis highlighting the mode or form of divestiture in Ghana as at 31st December, 2008………………………………………..17

Figure 2.1.

World Developing countries revenue from Privatization...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Hellow Essay
  • Hellow Essay
  • hellow Essay

Become a StudyMode Member

Sign Up - It's Free