According to previous studies, privatization of SOEs leads to significant efficiency improvements. However, recent studies reported that privatization does not have a significant efficiency improvement effect. This paper analyses the change in efficiency of 117 privatized companies in 31 countries from 1980 to 2010. Among the three indicators used as indicators of efficiency: cost per unit, earnings before interest and taxes per employee, and total asset turnover, the one that showed a clear improvement was the total asset turnover. Meanwhile, cost per unit deteriorated significantly, but then started to recover. And the movements of this indicator is consistent with the implications of Perotti (1995)'s signaling model, which is the theoretical basis of privatization. The earnings before interest and taxes per employee continues to deteriorate over the whole sample period. Therefore, it is judged that privatization authorities should strive to develop more sophisticated and careful privatization programs to improve the efficiency of privatized companies.

<p>Abstract :</p>\n\n<p><strong>: </strong>In the framework of economic development, we argue that privatization of State Owned Enterprises (SOEs) is unarguably one of the gateways to succeeding in economic growth. It provides the basis for perfect market competition, promoting employment, reducing government expenditure burden on its budget, promoting employment growth and provides efficient services, boost innovation and the technological revolution of especially developing countries which is an undisputable evidence for economic growth seen for example in Asia and China to be specific. China and a good number of countries with perfect market structures, early economic successes can be largely accredited to privatization of their underperforming SOEs model of promoting economic growth.  In this article, we will attempt to draw the attention of readers on the conjectural background of privatization of SOEs, its effects in promoting economic growth and strategies of its implementation drawing from the experiences of other countries. We used descriptive analysis approach to describe the facts and effects about the significance of privatization of SOEs in economies that are opening up or still moving up the economic development ladder. The paper also draws lessons from developed economies like the US where privatization is a symbol of a capitalist and free market society, although focusing on developing countries with specific reference to Sierra Leone, bench marking the case of China. We discovered that privatization helps government save more and improve efficiency largely through competition that motivates development as well as innovation.</p>

This paper draws on "China and India: Macroeconomic prospects and problems." China and India had similar development strategies prior to their breaking out of their deliberate insulation from the world economy and the ushering in of market-oriented economic reforms and liberalization. China began reforming its closed, centrally planned, non-market economy in 1978. India always had a large private sector and functioning markets, which were subject to rigid, state control until the hesitant and piecemeal reforms of the 1980s. These became systemic and far broader after India experienced a severe macroeconomic crisis in 1991. The political environment under which reforms were initiated and implemented in the two countries and their consequences were very different. India continues to be an open, participatory, multiparty democracy, while China has an authoritarian, one party regime, though it is liberalizing policies. China and India have a lot to gain, both from trading with each other and cooperating in the WTO. Each can learn from the other's policies, their successes and failures. This paper discusses a subset of economic issues common to both countries without touching on others, such as privatization of SOEs, reforms of the labour market (e.g., dealing with the "hokou" system in China and labour laws in India), financial sector reforms and, above all, political reforms. Although it may sound chauvinistic and naive, there is no doubt that China can learn a lot from the functioning of a vibrant, but somewhat chaotic, multiparty participatory democracy in India. After all, as the Chinese become richer and economically free, they are likely to demand personal and political freedoms. Hopefully, the Communist Party of China will anticipate and accommodate such demands, as it seems to have started doing already.

From ancient Greece to the Renaissance period, up to privatization, which showed the effect on both Britain from Nazi Germany it emerges both in and outside Turkey. In this study the historical process of privatization in the world and in Turkey, the process of privatization, privatization has been mentioned in the domain. The first arrangement made in 1984 on privatization in Turkey, privatization, which began in 1986, the species, in taking the scope of privatization of SOEs No. 233 Decree, and for compatibility with the Constitution on 2018 703 Decree Law No. 85 Amendments to Article It was mentioned that the privatization authority was given to the President. The aims, benefits and disadvantages of privatization have been addressed using the current figures and data. This process was tried to be revealed by making a literature review.

Decentralization, Strategic Policy Burdens and the SOE Reforms in China – Theory and Evidence

This study aimed to examine the differences in the company’s performance before and after privatization. This study also examined the differences in performance before and after privatization on specific sub-samples of the data which is based on privatization method. Government policy of carrying out the privatization toward SOEs is still pro and contra. Various Privatization methods offer its weaknesses and strengths. There are different opinions on the best method for SOE privatization in Indonesia. The population is all companies which execute the privatization method. Secondary data were used namely financial statement which was taken from the Indonesia Stock Exchange, and the company’s website. Data were analyzed using normality test data. In addition, the paired t-test by using normally distributed data assumption was used to test the hypothesis. The results showed that Direct method privatization positive and significant changes in measuring Total Asset Turnover. Performance conducted Privatization through the capital markets showed different results. Test on the capital market method of data showed a similar effect with an analysis on the entire data (without separating the privatization method used) that occur significant performance degradation, especially in measuring Total Asset Turnover, Debt Ratio and Return On Equity. Conducted Management/ Employee Buy-Out (MBO) privatization implied a substantial reduction in measuring Debt Ratio and Return on Equity Performance.

What Causes the Partial Reforms of Mega-SOEs in China? - A Nash Bargaining Approach

ABSTRACTWe employ data of 6194 firm-year observations for 1058 listed companies in the period 2006–2013 to investigate the interaction between stock liquidity and enterprise innovation in China and confirm that an increase in stock liquidity raises the number of patents granted, R&D investment, and the innovation efficiency of state-owned enterprises, while it decreases innovation significantly in private firms. These findings are also supported by quasi-natural experiments under the split-share structure policy reform and the adjustment of the stamp duty rate using propensity score matching and difference-in-difference methods. We then identify two possible mechanisms through which liquidity increases innovation: the entry of long-term and strategic institutional investors and the gradual privatization of SOEs. Several policy implications are provided in accordance with our findings.

State Capitalism in Cuba: The Lessons of the Literature on State Owned Enterprises and Market Liberalization

The privatization of SOEs in transition economies increases employment and productivity. The probability that firms export increases due to privatization, primarily because their attitudes about risks and profits change. Privatization may lead to a virtuous cycle among productivity, exports, and employment. Restrictions on marginal ownership and institutional reforms help maximize the benefits of privatization.

Listed State Owned Enterprises (SoEs) and the Treatment of Minority Shareholders – Case Studies from India.

Based on the fact of economic transition from a planned economy to a free market economy with internal, but external and every day more are more obedient than fiscal policy which defines the state (government) have an orientation of economic development, or determining the direction of development of a country, as well as a determining factor of the withdrawal of foreign investment. Western Balkans almost two decades now being attacked by the reality of transition, and the inability of building sustainable fiscal policies, to make proper orientation, as well as to attract foreign investors (The case of Kosovo).The Western Balkan countries are currently in a similar horizon in this journey, where all states are performance and successive challenges, in the same sectors as in the economic, legal and political, which all make an effort to come out this isolation transitive, towards a light, economic stabilization. Kosovo now has an interest, to begin economic stability, but with a perfect start, economic, with a vision and interest provided by the EU, and the many lessons learned by neighboring countries, that are pass, and have, passed, through these economic phases. Therefore we must be as vigilant in adopting and commitment of making the best economies, the experiences of European and Balkan countries, needs a clear cohesion, and doing some medium and long term policies, the economic path of interest Kosovo, for a sustainable economic development This is a reality that provided us with the opportunity to improve but that can never leave without facing directly. Reforms should be modeled taking into account these special features which I think are very long term: 1. Investment security, adequate legislation and security, to be implemented straight with the legislation. 2. Attractive Building (attractive) fiscal policy. 3. Transparent privatization of SOEs. 4. Clear procedures and elimination of public administration through byrokracive. Kosovo can be attractive for foreign investors due to the fact that there is a very young population where the average age of the population is 26 years. DOI: 10.5901/jesr.2014.v4n6p175

Based on the fact of economic transition from a planned economy to a free market economy with internal, but external and every day more are more obedient than fiscal policy which defines the state (government) have an orientation of economic development, or determining the direction of development of a country, as well as a determining factor of the withdrawal of foreign investment. Western Balkans almost two decades now being attacked by the reality of transition, and the inability of building sustainable fiscal policies, to make proper orientation, as well as to attract foreign investors (The case of Kosovo). The Western Balkan countries are currently in a similar horizon in this journey, where all states are performance and successive challenges, in the same sectors as in the economic, legal and political, which all make an effort to come out this isolation transitive, towards a light, economic stabilization. Kosovo now has an interest, to begin economic stability, but with a perfect start, economic, with a vision and interest provided by the EU, and the many lessons learned by neighboring countries, that are pass, and have, passed, through these economic phases. Therefore we must be as vigilant in adopting and commitment of making the best economies, the experiences of European and Balkan countries, needs a clear cohesion, and doing some medium and long term policies, the economic path of interest Kosovo, for a sustainable economic development This is a reality that provided us with the opportunity to improve but that can never leave without facing directly. Reforms should be modeled taking into account these special features which I think are very long term:1. Investment security, adequate legislation and security, to be implemented straight with the legislation. 2. Attractive Building (attractive) fiscal policy. 3. Transparent privatization of SOEs. 4. Clear procedures and elimination of public administration through byrokracive. Kosovo can be attractive for foreign investors due to the fact that there is a very young population where the average age of the population is 26 years. DOI: 10.5901/mjss.2014.v5n20p990

PurposeThe purpose of this paper is to explore the extent to which Chinese classical virtues act as a restraint on consumerist hedonic values and the associated priority on profit maximisation by managers.Design/methodology/approachThe paper is based on a literature review and adopts a reflective approach to the topic.FindingsThe paper considers how Chinese classical virtues are related to contemporary relational or indigenous values and how a social tension is created between these values and the hedonic values now present in Chinese urban society. Implications for management and management education are reviewed in the light of this tension.Practical implicationsThe social unrest created by the privatisation of SOEs can be mitigated by the promotion of management education sensitised to the cultural norms and expectations of the Chinese people in relation to the role and responsibilities of managers. TheJunzi(gentleman‐leader) archetype and the virtues ofren‐yi‐liare offered as exemplary features of a management seeking to balance social responsibility with profitability.Originality/valueThe paper highlights the social turbulence created by the advent of market economics in China and the concomitant rise of consumerism and the privatisation of state‐owned enterprises.

Privatization has been on a lot of countr ies' agenda, especially for the emerging countries for a long time. In Turkey, as an emergin g country, privatization plan has been a very high priority among the State Budget income items f or three decades. To identify and to explore the accounting role in privatization is the critical issue for the countries under privatization process. In this study, the importance of financial reporting d uring privatization process is examined. The overall responsibility of accounting in privatizati on is to develop investor confidence to channel the flows of funds and to ensure the effective and effi cient use of capital funds. Therefore, without a sound accountancy framework, the privatization proc ess would not generate the desired long term economic, social, and financial development results . Therefore, we analyzed the period of Turkish privatization experience by underlying the importan ce of financial reporting in this process. For this purpose, in the first part of the study, we defined the privatization and argued the positive and negative opinions about it. In the second part, we clarified the role of accounting in privatization process under disclosure, transitional problems, tr aining, valuation problems, and inflation accounting subsections. In the third part, we dis cussed the recent accounting developments which may effects privatization in Turkey. In the fourth part, we summarized the implementation of privatization in Turkey. Then, we mentioned the key issues in privatization process for emerging economies. Based on the Turkey's privatization prac tices, financial reporting has a very important role in the SOE's privatization process. In our poi nt of view, since accounting has an important role in privatization, this role takes place before , during and also after the privatization. It shoul d be taken into consideration that the main objective of privatization is not only to privatize SOE's, but also keep the sustainability of privatized SOE' s. While privatization creates sources for new investments of the governments, it should support t he effectiveness and economics of goods and services in the area of privatization. So the susta inability of privatized companies is very important as well as their sales. All of the above purposes c an be controlled by solely accounting.

In the SOE privatization auctions in China, there are many conflicting factors the government has to concern about, such as maximizing the auction revenue and minimizing the induced unemployment. This paper constructs the first price bidding with employment constraint to take both criteria into account. By adding that the winner is required to settle down a certain quantity of former SOE employees in the new enterprise, this mechanism brings on the competition among prospective investors in both the price and the quantity of employment, which can help the government to balance the different objectives efficiently. However, the constraint will function properly only under the condition that the government has stressed sufficiently on the employees’ rearrangement and set the best employment threshold. Meanwhile, if the government specifies an explicit compensation standard for the induced lay-offs to eliminate investors’ accommodating cost dispersion or introduces more strategic investors with considerable heterogeneity to participate in the bidding, its dual-objective can be better equilibrated.

Studies of comparative economic systems in the post-war period reflected the cold war from an ideological viewpoint; however, as the socialist block collapsed at the end of the 1980s, such studies changed from studies of comparative economic systems to those of comparative economic institutions. This paper examines the issue of the privatization of state-owned enterprises as one of the foci on such comparative institutions, reviews the main results of empirical analyses of privatization, and then discusses several questions which remain to be studied with regard to privatization and its effects.