TY - UNPB
T1 - The impact of privatisation on firm performance in a transition economy
T2 - the case of Vietnam
AU - Truong, Dong Loc
AU - Lanjouw, Gerrit Jan
AU - Lensink, Bernardus Wander
N1 - Relation: http://som.rug.nl/
date_submitted:2005
Rights: Graduate School/Research Institute, Systems, Organisations and Management (SOM)
PY - 2004
Y1 - 2004
N2 - The Vietnamese privatisation programme, launched in 1992, differs from usual Western privatisation programmes in terms of the residual percentage of shares owned by the state and the portion of shares transferred to insiders. This begs the question whether these differences influence the effects of the programme on firm performance. This study measures the impact of privatisation on firm performance in Vietnam by comparing the pre- and post-privatisation financial and operating performance of 121 former state-owned enterprises (SOEs).We find significant increases in profitability, sales revenue, efficiency and employee income.
In addition, an increase in employment and a decline in leverage of newly-privatised firms is found, although the changes are statistically insignificant. Regression analyses reveal that firm size, residual state ownership, corporate governance and stock-market listing are key determinants of performance improvements.
AB - The Vietnamese privatisation programme, launched in 1992, differs from usual Western privatisation programmes in terms of the residual percentage of shares owned by the state and the portion of shares transferred to insiders. This begs the question whether these differences influence the effects of the programme on firm performance. This study measures the impact of privatisation on firm performance in Vietnam by comparing the pre- and post-privatisation financial and operating performance of 121 former state-owned enterprises (SOEs).We find significant increases in profitability, sales revenue, efficiency and employee income.
In addition, an increase in employment and a decline in leverage of newly-privatised firms is found, although the changes are statistically insignificant. Regression analyses reveal that firm size, residual state ownership, corporate governance and stock-market listing are key determinants of performance improvements.
M3 - Working paper
BT - The impact of privatisation on firm performance in a transition economy
ER -