evaluation of privatization impact on privatyed enterprises

since public sector enterprises poor performance become evident, privatization as a means of improving such enterprises performance and curbing government interference in business activities has attracted much attention at national policy making levels. privatization is a complex and long term process the effect of which may appear over a long period of tome. there fore, considering it a limpid process and relying over- optimistically on it to achieve quick results may impact privatization adversely. in iran, privatization as a policy was first addressed in the first 5 year economic – social –cultural development plan (1389-94), two years later (june 1991), a program for transferal and disposal of economic activities to private sector was approved by the council of ministers. s 35 of 1998 and 1999 budget bill has required disposal of state owned enterprises and curbing government interferences in economic activities. in an official announcement of i.r.i government, selling government enterprises to private sector for improving efficiency, curbing government interferences in economic activities, economic equilibrium and best usage of country’s resources was emphasized. the first government resolution in this respect demanded nationalized industries organization, industrial development and renovation organization and ministries to dispose/ sell 247 of their enterprises to private sector though stock exchange, auction and negotiation. later government resolutions increased the number of such enterprise to 446. due to stock exchange’s role and important in   the process of selling government controlled enterprises equity stock to private sector as well as availability of information and statistics of such enterprises (tehran stock exchange listed companies), stock exchange listed companies at the end of 1375 (20 the march 1996) were chosen for this study. this dissertation analyses the performance of disposed enterprises for post disposal period. this dissertation’s main and basic hypothesis is as follows which is subdivided to three sub-hypothesis.