Is it a few days of good times and then darkness ensues? Long-term performance of an industry after broad reforms and privatisation

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    Abstract

    The long-run financial performances of privatised firms have rarely been investigated. This study examines the financial and operational performance within the Pakistani cement industry utilising two decades of post-privatisation data. Broadly speaking, regression analyses confirm that long-term positive impacts of reforms and privatisation on profitability, output and investment are uncertain. After controlling for firm, industry and economic factors, our estimates show that privatised firms initially improved their profitability but recorded a statistically significant decline over a longer period. The sale efficiency, capacity utilisation, and leverage indicators, however, improved over a considerably long post-ownership change period.
    Original languageEnglish
    JournalInternational Economic Journal
    Early online date14 Jun 2018
    DOIs
    Publication statusEarly online - 14 Jun 2018

    Keywords

    • Financial performance
    • Reforms
    • Privatisation
    • Competition
    • Cement industry
    • Pakistan

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