SIP in China How Privatization Affect Firm Financial and Operating Performance?
Privatization program in China has attracted the world attention because of its special economic and political contexts, and its different strategy. Share issue privatization (SIP) is a practical and powerful approach used in this program. An insight of SIP will help people to gain a better understa...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2004
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| Online Access: | https://eprints.nottingham.ac.uk/24435/ |
| Summary: | Privatization program in China has attracted the world attention because of its special economic and political contexts, and its different strategy. Share issue privatization (SIP) is a practical and powerful approach used in this program. An insight of SIP will help people to gain a better understanding of the whole privatizing program. This paper compares financial and operating performance of a sample of 100 firms before and after privatization. I find mixed results of SIP. Measures that improve following privatization include operating efficiency, capital investment spending, and output; employment level increases and leverage significantly declines. Meanwhile, most SIP firms experienced a sharp (and also significant) decrease in profitability ratio measures. |
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