The Privatization Dividend: A worldwide analysis of the financial and operating performance of newly-privatized firms
Author: William L. Megginson, Robert C. Nash, and Matthias van Randenborgh Date: 2/1/1996 (PDF, 200KB)
In a sample of sixty-one privatized companies in eighteen countries--including Chile, France, Germany, Italy, Malaysia, Singapore, and the United Kingdom--William Megginson, Robert Nash, and Matthias van Randenborgh identify significant improvements in postprivatization performance. On average, profitability, efficiency, investment, and employment all rise in the years following privatization. And financial policies start to resemble those of private entrepreneurial companies--lower debt-equity ratios and higher dividend payout.