The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company

Khalaf Al-Taani

doi:doi:10.11648/j.jfa.20130103.12

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The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company

Khalaf Al-Taani

Published in Journal of Finance and Accounting (Volume 1, Issue 3)

Received: 15 August 2013 Published: 30 October 2013

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Abstract

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 post-privatization 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.

Published in	Journal of Finance and Accounting (Volume 1, Issue 3)
DOI	10.11648/j.jfa.20130103.12
Page(s)	46-54
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Privatization, Market, Industry, Indicators, Jordanian Cement Factories Company

References

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Khalaf Al-Taani. (2013). The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company. Journal of Finance and Accounting, 1(3), 46-54. https://doi.org/10.11648/j.jfa.20130103.12

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ACS Style

Khalaf Al-Taani. The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company. J. Finance Account. 2013, 1(3), 46-54. doi: 10.11648/j.jfa.20130103.12

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AMA Style

Khalaf Al-Taani. The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company. J Finance Account. 2013;1(3):46-54. doi: 10.11648/j.jfa.20130103.12

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@article{10.11648/j.jfa.20130103.12,
  author = {Khalaf Al-Taani},
  title = {The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company},
  journal = {Journal of Finance and Accounting},
  volume = {1},
  number = {3},
  pages = {46-54},
  doi = {10.11648/j.jfa.20130103.12},
  url = {https://doi.org/10.11648/j.jfa.20130103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20130103.12},
  abstract = {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 post-privatization 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.},
 year = {2013}
}

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TY  - JOUR
T1  - The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company
AU  - Khalaf Al-Taani
Y1  - 2013/10/30
PY  - 2013
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AB  - 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 post-privatization 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.
VL  - 1
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Author Information

Khalaf Al-Taani

Department of Banking & Finance, Faculty of Finance & Administrative Sciences, Irbid National University, Irbid – Jordan

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APA Style

Khalaf Al-Taani. (2013). The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company. Journal of Finance and Accounting, 1(3), 46-54. https://doi.org/10.11648/j.jfa.20130103.12

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ACS Style

Khalaf Al-Taani. The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company. J. Finance Account. 2013, 1(3), 46-54. doi: 10.11648/j.jfa.20130103.12

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AMA Style

Khalaf Al-Taani. The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company. J Finance Account. 2013;1(3):46-54. doi: 10.11648/j.jfa.20130103.12

Copy | Download

@article{10.11648/j.jfa.20130103.12,
  author = {Khalaf Al-Taani},
  title = {The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company},
  journal = {Journal of Finance and Accounting},
  volume = {1},
  number = {3},
  pages = {46-54},
  doi = {10.11648/j.jfa.20130103.12},
  url = {https://doi.org/10.11648/j.jfa.20130103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20130103.12},
  abstract = {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 post-privatization 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.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Privatization on Financial Performance of State – Owned Enterprises: A Case Study of the Jordanian Cement Factories Company
AU  - Khalaf Al-Taani
Y1  - 2013/10/30
PY  - 2013
N1  - https://doi.org/10.11648/j.jfa.20130103.12
DO  - 10.11648/j.jfa.20130103.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 46
EP  - 54
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20130103.12
AB  - 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 post-privatization 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.
VL  - 1
IS  - 3
ER  -

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