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Privatization Effect on Shareholder Value in the Jordanian State Owned Enterprises

Author

Listed:
  • Riyad Neman Darwazeh

    (Business Faculty, Al-Ahliyya Amman University, Jordan)

  • Mohammad Dabaghia

    (Business Faculty, Al-Ahliyya Amman University, Jordan.)

Abstract

Privatization is the act of reducing the role of government or increasing the role of the private institutions of society in satisfying people’s needs; it means relying more on the private sector and less on government. The Jordanian government adopted a privatisation program in 1996 to enhance the efficiency and productivity of government owned companies. The principal objective of this study is to examine the effects of the privatisation program on enhancing the performance of state-owned enterprises in Jordan. Data from 23 companies covering the period from 1996 to 2013 have been used to test the research hypotheses. The data was then analysed using dependent samples t-tests and multiple regression analysis. The results analysis shows that the privatisation program had a significant positive relationship with shareholder value in the Jordanian state owned enterprises.

Suggested Citation

  • Riyad Neman Darwazeh & Mohammad Dabaghia, 2018. "Privatization Effect on Shareholder Value in the Jordanian State Owned Enterprises," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 70-78.
  • Handle: RePEc:eco:journ1:2018-02-10
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    References listed on IDEAS

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    More about this item

    Keywords

    Privatization; State Owned Enterprises; Shareholder Value;

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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