Corporate Governance and Privatisation: Lessons from Transition Economies

Corporate Governance and Privatisation: Lessons from Transition Economies

Author: 
Estrin, Saul
Place: 
Oxford
Publisher: 
Oxford University Press
Date published: 
2002
Record type: 
Journal Title: 
Journal of African Economies
Source: 
Journal of African Economies Volume 11 Supp 1 Feb 2002 pp. 68-104
Abstract: 

Although privatisation has turned into a worldwide phenomenon, it is only recently that developing countries have launched extensive privatisation programmes. This paper surveys the empirical literature on the operating and financial performance of newly privatised firms in developing countries. The major studies in the field suggest that privatisation improves the operating performance of former state-owned enterprises. However, performance improvements seem to be less marked for firms in less developed countries. The paper also provides new evidence for a subset of firms privatised exclusively in African countries. The preliminary results for a sample of 16 privatised firms in Africa suggest that privatisation resulted in profitability improvements, although not significantly. Efficiency as well as output measured by real sales decreased slightly but not significantly, while capital expenditures rose significantly in the post-privatisation period.

Language: 

CITATION: Estrin, Saul. Corporate Governance and Privatisation: Lessons from Transition Economies . Oxford : Oxford University Press , 2002. Journal of African Economies Volume 11 Supp 1 Feb 2002 pp. 68-104 - Available at: https://library.au.int/corporate-governance-and-privatisation-lessons-transition-economies