| Abstract [eng] |
SUMMARY Clara Chiemeka Dimudu THE IMPACT OF PRIVATIZATION ON THE EFFICIENCY OF STATE-OWNED ENTERPRISES Final Master Thesis Academic supervisor: Assoc. prof. Dr. Laima Urbšienė Vilnius University, Faculty of Economics and Business Administration Finance and Banking Vilnius, 2021 110 pages, 50 figures, 51tables, 51 references Thesis description: State-owned enterprises in Nigeria have witnessed an unprecedented transformation in the last two decades as many of these enterprises had become privatized during the period. One of the major public enterprises that were privatised is the Power Holding Company of Nigeria (PHCN), the sole electricity generation and distribution company in Nigeria. Public policy thrust towards privatization was informed by some claims and assumptions that privatization enhances performance efficiency of public enterprises. Hence, this study, examines the impact of privatization on the performance of state-owned enterprises. Aim and objectives: The aim of the thesis is to investigate the impact of privatization on performance of state-owned enterprises. The objectives of the thesis are to analyse the effect of privatization on financial and operational performance of state owned enterprises; identify if privatization had eliminated wastage that characterizes state owned enterprises; and to identify the effect of privatization on power generation and distribution capacity of successor companies of PHCN. Methodology and Results: The research applied comparative analysis methods using descriptive statistical tools such as mean, skew-ness, Kurtosis and Wilcoxon Signed Ranks Tests and Ordinary Lease Square regression analysis tools. The study comparatively analysed data that were collected from annual reports of selected two SOEs that covers the period five years before and five years after privatization. Results were presented using descriptive statistics that involve mean, absolute performance change (APC), Relative Performance Change (RPC) and Wilcoxon rank factor. The regression and post regression analysis test results were also presented. Through the results of these analyses, the impacts of privatization on the performance of state-owned enterprises were identified. Conclusions. Findings from the study show that Privatization positively improved their financial performance but the improvement is only slightly significant or noticeable with respect to their sales but not significant with respect to their assets and shareholders’ equity. The study also found that privatization positively impacted on their Operational performance and this impact is slightly significant or noticeable with respect to their sales and income. It was also discovered that privatization negatively impacted on their waste which is positive improvement on waste elimination but this impact is not significant or noticeable with respect to their debt as compare to the company assets and equity but significant or noticeable with respect to reducing waste due to excess number of employees. Privatization negatively impacted on power distribution loss which is positive improvement on power distribution and positively impacted on power collection efficiency, but these improvements are not significant or noticeable. At the end of the study, practical recommendations are given as well as the implications and limitations of the research. |
