Control Privatization, Corporate Governance and Firm Performance

Abstract

The aim of this paper is to determine the impacts ofcontrol privatization on financial situation and performance of thefirms transferred to private sector in IRAN. Using data pertinent to140 public firms privatized during 2001 to 2012, it was examinedwhether control privatization had any positive impacts on the selectedmeasures. To this end, multivariate regression models were used.Research findings showed that: 1. Privatization do not lead todecreased large shareholder expropriation; 2. Privatization do not leadto decreased government debt; 3. Privatization leads to increasedproductivity of employees; and 4. Privatization leads to improvedfirms performance. These results can describe how public policymakers improve poor performance of firms by control privatization.

Keywords

• Control Privatization
• Employee Productivity
• firm performance
• Government Debt
• Large Shareholder Expropriation