The impact of privatization on financial performance of state - owned enterprises: A case study of the Jordanian Cement Factories Company

摘要

This study aimed at investigating the potential impact of privatization on the financial and operating performance of the Jordanian Cement Factories Company (JCFC) as an attempt to contribute to the debate on how the privatization of public enterprises may affect the financial and operational performance of these enterprises. The data were obtained from the annual reports of JCFC for five years before and five years after privatization. Performance criteria were calculated and compared to determine whether there are significant differences among them in the pre- and postprivatization periods. Related statistics of JCFC share performance were further compared with the market and industry indicators. The findings revealed that while privatization did not seriously affect JCFC's operating performance and profit, it led to liquidity improvement, debt reduction, improved investments, and a decline in overstaffing.