Measuring Transparency of Corporate Transitional Performance in Egypt: A Quantitative Approach

Abstract

This paper develops a model to quantify the major aspects of the privatized public enterprise transitional performance. The paper expands the literature on corporate performance to address the various factors that should be taken into account for monitoring the performance of the public enterprises considered for privatization. The paper incorporates measures adopted from the literature of corporate strategy, corporate governance, corporate finance, and international business. By using discriminant analysis, this paper develops a Z model that can be used for structuring the public enterprise transitional performance in Egypt as a developing transition economy. The results conclude that transparency of public enterprise transitional performance is determined by three dimensions, which are: (1) Measures of alternative corporate governance structures, (2) Measures of company's competitive position, and (3) Measures of the risk of financial transformation.