This thesis presents an analysis on 54 public European companies privatized between 1985 and 2009. The main purpose of the current dissertation is to examine whether privatizations by public companies led to a substantial improvement in their financial position. For our purpose, we use equality testing by comparing financial ratios surrounding the privatization year. Specifically, we utilize the t-student test and the Wilcoxon test for the total of the sample, in order to determine how the privatization process affected the economic performance of the privatized companies. The sample is divided in two subsets, one for the companies that have been privatized up to 50%, and one for the companies which have been privatized more than 50%. The empirical results on privatization appear to conclude that privatization leads to a more efficient distribution of services.
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